Stocks Mixed, Bonds Gain; Oil Rises on Iran Stress: Markets Wrap - Yahoo Finance

U.S. Stock Futures Climb as Bonds Gain; Oil Rises: Markets Wrap

(Bloomberg) -- U.S. equity futures climbed with Asian stocks on Monday while European shares slipped as investors weighed mounting geopolitical risks and geared up for the high-stakes meeting between Presidents Donald Trump and Xi Jinping later this week. West Texas oil advanced as the White House said it was planning fresh sanctions on Iran.

S&P 500 futures pointed to an upbeat start to the week on Wall Street, though they came off their highs for the session. European shares reversed an earlier gain, dragged lower by carmakers as Daimler AG cut its profit forecast for the third time in a year. Stocks saw modest increases across most major Asian markets.

The euro strengthened to a three-month high even as data showed that a slump in German business confidence deepened in June, while the Turkish lira jumped after an opposition candidate won the redo of Istanbul’s mayoral race. The dollar dipped and Treasuries rose along with European bonds.

Markets currently seem to lack conviction in either direction, as investors weigh the Middle East situation alongside a dovish shift from major central banks and the ongoing trade tensions between the U.S. and China. While America plans to announce more sanctions against Iran, Trump is also willing to negotiate with Iranian leaders with “no preconditions” to ensure the Islamic Republic never acquires a nuclear weapon. The sanctions would come days after the U.S. president abruptly called off a plan for air strikes.

Next up comes a speech from Federal Reserve Chair Jerome Powell on Tuesday, then the Trump-Xi sit down on the sidelines of the Group of 20 summit in Japan at the end of the week.

“The focus is now on G-20,” said Salman Ahmed, chief global strategist at Lombard Odier Investment Managers. “We have rallies in risky assets, but validation of a breakthrough is needed at the G-20 meeting for the current rally to continue. The clearest trend for us is downward pressure on yields globally as, breakthrough or not, easing is coming because damage is already in the pipeline.”

Elsewhere, the Australian dollar rose after Reserve Bank of Australia Governor Philip Lowe said there are limits to what monetary easing can achieve. Gold extended its advance above $1,400 an ounce, while a Bitcoin surge took it above $11,000 for the first time in 15 months.

Here are some key events coming up:

Fed Chairman Jerome Powell speaks at the Council on Foreign Relations in New York Tuesday. He’ll discuss the challenges facing the U.S. economy.MSCI Inc. announces results of its 2019 Market Classification Review on Tuesday, including whether Kuwait gets upgraded from frontier to emerging-market status.The Group of 20 summit is in Osaka, Japan on Friday and Saturday.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index climbed 0.2% as of 7:18 a.m. New York time.The Stoxx Europe 600 Index declined 0.2% to the lowest in a week.The Shanghai Composite Index increased 0.2%, hitting the highest in almost eight weeks with its sixth straight advance.The MSCI Emerging Market Index fell less than 0.05%.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1%, hitting the lowest in almost 14 weeks with its fifth straight decline.The euro jumped 0.2% to $1.1394, the strongest in almost 14 weeks.The British pound climbed 0.1% to $1.275.The onshore yuan declined 0.2% to 6.878 per dollar.The Japanese yen advanced less than 0.05% to 107.29 per dollar, the strongest in about 14 months.

Bonds

The yield on 10-year Treasuries dipped two basis points to 2.03%.The yield on two-year Treasuries decreased two basis points to 1.75%.Germany’s 10-year yield declined three basis points to -0.31%.Japan’s 10-year yield advanced less than one basis point to -0.154%.

Commodities

West Texas Intermediate crude increased 0.7% to $57.84 a barrel, the highest in almost four weeks.Iron ore fell 0.1% to $111.41 per metric ton.Gold climbed 0.6% to $1,408.30 an ounce, reaching the highest in almost six years on its fifth consecutive advance.

--With assistance from Adam Haigh and Anchalee Worrachate.

To contact the reporter on this story: Yakob Peterseil in London at ypeterseil@bloomberg.net

To contact the editor responsible for this story: Samuel Potter at spotter33@bloomberg.net

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

©2019 Bloomberg L.P.

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2019-06-24 11:25:00Z
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