U.S. Stock Futures Buck Rebound in Europe and Asia: Markets Wrap – Yahoo Finance


(Bloomberg) — European stocks rebounded from the worst day in more than two years and Asian shares posted modest gains as investors sought to end a bruising week on a more upbeat note. Signs of stress remained, however, as U.S. equity futures declined and Treasuries rose.

The Stoxx Europe 600 Index, which on Thursday dropped the most since the U.K. voted to leave the EU in 2016, jumped as every sector rallied. S&P 500 futures came off their lows as the European session wore on, but remained in the red for a second day. Japanese equities outperformed as most Asian gauges nudged higher. Italian debt climbed as European bonds largely drifted. The dollar edged up and the pound fell as U.K. Prime Minister Theresa May was said to be weighing a plan to postpone the vote on her Brexit deal.

Financial markets remain on tenterhooks amid worries the trade truce between China and the U.S. won’t last after the arrest of the chief financial officer of Huawei. As traders start to doubt the Federal Reserve will raise rates in 2019, JPMorgan Chase & Co. CEO Jamie Dimon said while the focus has been on the central bank moving too quickly, there’s also a risk it does too little, too slowly.

For his part, Fed Chair Jerome Powell delivered a bullish assessment of the U.S. economy and the job market ahead of Friday’s labor report. It comes as market-implied U.S. rate expectations crumble amid the tumult in equities.

“The big question mark still is what’s going to happen in 2019” with the Fed, Omar Aguilar, CIO of equities and multi-asset strategies at Charles Schwab, told Bloomberg TV. “The jobs report could easily be the catalyst that will tell us a little more about what the path may be.”

Elsewhere, oil continued to be a drag on sentiment, with West Texas Intermediate trading below $51 a barrel as OPEC struggled to reach a deal on oil-production cuts. Cryptocurrencies continued their slide with a fresh bout of losses after U.S. regulators dashed hopes that a Bitcoin exchange-traded fund would appear before the end of this year.

Some of the key events investors will be focused on this week:

OPEC ministers meet again in Vienna Friday. The U.S. monthly employment report for November is due.China November trade data are due on Saturday.

And here are the main moves in markets:

Stocks

Futures on the S&P 500 Index dipped 0.4 percent as of 9:42 a.m. London time, to the lowest in more than a week.The Stoxx Europe 600 Index gained 1.4 percent, the biggest rise in more than five weeks.The U.K.’s FTSE 100 Index increased 1.5 percent, the largest climb in 11 weeks.Germany’s DAX Index gained 0.9 percent.The MSCI Asia Pacific Index rose 0.2 percent.The MSCI Emerging Market Index climbed 0.3 percent.

Currencies

The Bloomberg Dollar Spot Index increased 0.1 percent.The euro fell 0.1 percent to $1.1364.The British pound declined 0.3 percent to $1.2747, the largest fall in a week.The Japanese yen decreased 0.1 percent to 112.84 per dollar.

Bonds

The yield on 10-year Treasuries dipped two basis points to 2.88 percent, hitting the lowest in three months with its seventh straight decline.Germany’s 10-year yield rose one basis point to 0.24 percent.Britain’s 10-year yield climbed one basis point to 1.257 percent.The spread of Italy’s 10-year bonds over Germany’s declined seven basis points to 2.9001 percentage points.

Commodities

West Texas Intermediate crude decreased 1.4 percent to $50.77 a barrel, the lowest in more than a week.Gold rose 0.1 percent to $1,239.42 an ounce, the highest in more than 20 weeks.

–With assistance from Adam Haigh.

To contact the reporter on this story: Samuel Potter in London at spotter33@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Yakob Peterseil

For more articles like this, please visit us at bloomberg.com

©2018 Bloomberg L.P.



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