Europe Stocks, U.S. Futures Shrug Off Asia's Slump: Markets Wrap - Yahoo Finance

Europe Stocks, U.S. Futures Shrug Off Asia's Slump: Markets Wrap

(Bloomberg) -- European stocks edged higher and U.S. equity futures pared earlier losses on Monday, largely shaking off steep declines in Asia as investors kicked off the busy week in a cautious mood.

Mining firms and banks led the Stoxx Europe 600 higher, with Deutsche Bank’s shares rising after it announced plans to cut the workforce by one-fifth. S&P 500 contracts were little changed. Asian equities saw a saw sharp retreat, with technology stocks taking a hit from Japan’s fresh export restrictions on semiconductor materials. The euro was steady after German industrial production data just missed expectations. The Treasury 10-year note yield ticked down toward 2%.

Turkey’s lira slipped after President Recep Tayyip Erdogan’s shock decision to replace the country’s central bank governor fueled concerns over the independence of the regulator and whether it will lower borrowing costs more than expected.

The week is stacked with both central banker speeches and key data. All eyes will be on Federal Reserve Chairman Jerome Powell as he speaks to Congress just days after the latest labor report delivered signs the American economy remains on track.

U.S. stocks hit a record last week and a bond rally took yields to multiyear lows amid expectations the Fed will lower interest rates by at least a quarter percentage point at its July meeting, though fed fund futures showed traders trimming the amount of easing they expect.

“The testimony this week will be crucial around how they are seeing the evolution of the U.S. economy,” Anne Anderson, head of fixed income at UBS Asset Management in Sydney, told Bloomberg TV. “It’s a matter of finding the balance between not scaring people that there’s something deleterious going on, but moving ahead of the curve.”

Elsewhere, oil fluctuated as geopolitical risks remained high after Iran threatened to breach the levels of uranium enrichment under the 2015 nuclear accord.

Here are some key events coming up:

U.K. Conservative Party members start voting on Monday to choose Theresa May’s successor. Front-runner Boris Johnson and Jeremy Hunt will appear at events through the week to try and secure votes, including a TV debate on July 9.Federal Reserve Chairman Jerome Powell testifies before Congress on monetary policy and the state of the U.S. economy on Wednesday and Thursday.Fed minutes are due on Wednesday, ECB minutes on Thursday. A key measure of U.S. inflation, the core consumer price index, is expected to have increased 0.2% in June from the prior month, while the broader CPI is forecast to remain unchanged. U.S. producer prices are due on Friday.

Here are the main moves in markets:

Stocks

Futures on the S&P 500 Index decreased 0.1% as of 9:23 a.m. London time.The Stoxx Europe 600 Index increased 0.1%.The U.K.’s FTSE 100 Index gained 0.2%.The MSCI Asia Pacific Index declined 1.1%, the lowest in more than a week on the biggest drop in two months.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1%.The euro climbed 0.1% to $1.1233.The British pound gained 0.1% to $1.2532, the largest gain in more than a week.The Japanese yen advanced 0.1% to 108.34 per dollar.

Bonds

The yield on 10-year Treasuries decreased one basis point to 2.03%.Germany’s 10-year yield dipped one basis point to -0.37%.Britain’s 10-year yield declined two basis points to 0.717%.

Commodities

Gold climbed 0.5% to $1,406.02 an ounce.West Texas Intermediate crude increased 0.5% to $57.82 a barrel, the highest in a week.

--With assistance from Emily Barrett.

To contact the reporter on this story: Laura Curtis in London at lcurtis7@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Todd White

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

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2019-07-08 08:30:00Z
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