Stocks Start Month With Losses; Dollar Holds Gain: Markets Wrap
Asian stocks began September with declines, while the dollar held on to its recent rally as investors assessed the outlook for trade and whether turmoil in some emerging markets can be contained. The pound slid as the chief European negotiator on Brexit said he strictly opposed the U.K.s current proposal.
Stocks slipped in across the region, while European futures were mixed. The S&P 500 closed flat Friday as gains in consumer shares offset losses in energy stocks, while Treasuries posted a modest decline. U.S. markets are closed for Labor Day on Monday. The yen ticked higher alongside the euro and emerging market equities fell.
With U.S. stocks reaching a fresh all-time high in August and the Federal Reserve set to raise interest rates again later this month, investors are hoping the global economy can withstand shocks from trade restrictions. Emerging markets remain under pressure, with Argentina and Turkey the latest epicenters for crises denting sentiment.
I dont buy the ideas that valuations are cheap in these markets Chris Weston, Head of Research at Pepperstone Financial Pty Ltd., told Bloomberg TV from Melbourne. My view is to continue trading on the trends -- staying bearish on emerging markets. We need to see a perception of the U.S. dollar going lower and clarity that the trade tensions are coming to some sort of a close. I dont think were there yet.
Elsewhere, West Texas crude slid and copper steadied after last weeks losses. The Canadian dollar retreated after Nafta talks stalled.
Here are some key events coming up this week:
Bank of England governor Mark Carney testifies on the August inflation report and policy decision. Executives from Facebook, Twitter and Google testify on social media, Russia meddling. U.S. employment report for August is due Friday.
These are the main moves in markets: Stocks
The MSCI Asia Pacific Index dipped 0.7 percent as of 3:08 p.m. Tokyo time. Topix index sank 0.9 percent. Hong Kongs Hang Seng Index dipped 1 percent. Kospi index declined 0.8 percent. Australias S&P/ASX 200 Index fell 0.1 percent.
The Japanese yen rose 0.1 percent to 110.89 per dollar. The offshore yuan rose 0.1 percent to 6.8392 per dollar. The euro rose 0.1 percent to $1.1613. The Bloomberg Dollar Spot Index fell less than 0.05 percent to 1,182.05.
The yield on 10-year Treasuries closed Friday at 2.86 percent. Australias 10-year yield fell less than one basis point to 2.518 percent. Japans 10-year yield gained less than one basis point to 0.115 percent.
West Texas Intermediate crude fell 0.3 percent to $69.59 a barrel. Gold was little changed at $1,201.15 an ounce. LME copper rose less than 0.05 percent to $5,976.50 per metric ton.
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