Stocks Recover as Trade Angst Eases; Dollar Steady: Markets Wrap

Equity markets grappled for direction before climbing alongside U.S. equity-index futures. Japan’s Topix index erased losses to finish up as futures indicated the recovery in equities will extend to Europe. Chinese stocks reversed declines, though the Shanghai Composite Index remained below the key 3,000 level it broke on Tuesday. Oil recovered to trade over $65 a barrel even as Iran signaled OPEC may fail to agree on output limits. The euro and pound fell.

The threat from U.S. President Donald Trump for tariffs on an additional $200 billion of Chinese goods is the latest in a series of opening shots of a trade war that is keeping investors on their toes. Assets in emerging markets have been hit hard as the escalation in tensions coincides with steeper projections for U.S. interest-rate hikes.

“Markets are preparing for further downside whilst hoping that the latest salvos from the Trump administration prove to be another ‘negotiating’ tactic,” Rakuten Securities Australia Chief Operating Officer Nick Twidale said in a note to clients Wednesday. “The jury is out at the moment on the next move in sentiment and that’s reflected well in the current market levels.”

Elsewhere, the onshore yuan rose after the People’s Bank of China set its daily reference rate at a stronger level than all analyst and trader projections. Indonesia’s stocks were the worst performers in Asia as traders returned after a holiday.

Here are some key events to watch for this week:

Draghi, Reserve Bank of Australia Governor Philip Lowe, Bank of Japan Governor Haruhiko Kuroda, and Fed Chairman Jerome Powell join a panel on central bank policy in Sintra, Portugal, on Wednesday. Thailand, Philippines and Brazil central bank decisions due Wednesday. Bank of England rate decision on Thursday. Also on Thursday: U.S. jobless claims, New Zealand GDP, South Korea export data. The Organization of Petroleum Exporting Countries meets in Vienna on Friday.And here are the main market moves:

Stocks

Japan’s Topix index rose 0.5 percent at the 3 p.m. close in Tokyo. Australia’s S&P/ASX 200 Index rose 1.1 percent. Kospi index added 1.3 percent. Hang Seng Index rose 1.1 percent. The Shanghai Composite Index gained 0.3 percent after tumbling 3.8 percent Tuesday. The S&P 500 futures climbed 0.2 percent. FTSE 100 futures advanced 0.7 percent as of 7:04 a.m. in London. The MSCI Asia Pacific Index rose 0.7 percent.

Currencies

The Bloomberg Dollar Spot Index was little changed. The yen lost 0.1 percent to 110.17 per dollar. The euro declined 0.1 percent to $1.1579, near a three-week low. The pound fell less than 0.1 percent to $1.3168, close to the weakest since November.

Bonds

The yield on 10-year Treasuries gained one basis point to 2.90 percent. Australia’s 10-year bond yield gained three basis points to 2.65 percent.

Commodities

Gold was steady at $1,274.42 an ounce. West Texas Intermediate crude rose 0.6 percent to $65.43 a barrel.

Rašyti komentarą