(Bloomberg) -- Equities climbed around the world after China’s stronger-than-expected daily fixing of its currency eased fears about a worsening trade conflict. Gold slipped from a six-year high.
All three benchmark stock gauges in the U.S. advanced, led by retailers, as the Stoxx Europe 600 rose for a second day. Gold dipped after closing above $1,500 an ounce for the first time since 2013, while Treasury yields edged higher and the dollar weakened slightly. Oil futures advanced.
Thursday’s move by the People’s Bank of China was seen as an effort to stabilize its currency and went some way toward easing market concern that peaked Monday, when a weak reference rate spurred concern that the trade war was heating up. Despite evidence of some renewed risk appetite, traders remain jumpy about the potential for escalation in the conflict.
“For now, as far as volatility, the worst is over,” Rick Bensignor, the founder of Bensignor Group and a former strategist for Morgan Stanley, said in an interview at Bloomberg’s New York headquarters. “China’s smartly doing what they can. On their part, I think it’s a good tactical move.”
Elsewhere, yields on bunds fluctuated after Reuters reported that Germany is mulling debt sales to fund climate-protection plans, while a Finance Ministry spokesman said there had been no decision to give up a balanced budget.
A gauge of Asia stocks increased as China’s Shanghai Composite rebounded from the lowest level since February. The Australian dollar gained from its lowest level in a decade. Bitcoin hovered below $12,000, a level it’s failed to close above for one month.
Oil snapped a three-day losing streak after Saudi Arabia contacted other producers to discuss options to stem a rout that’s been driven by the worsening China trade conflict.
Here are the main moves in markets (all sizes and scopes are on a closing basis):
Stocks
- The S&P 500 Index increased 0.7% as of 9:59 a.m. New York time.
- The Stoxx Europe 600 Index jumped 1.2%, the biggest increase in more than seven weeks.
- The MSCI Asia Pacific Index climbed 0.5%, the largest increase in almost three weeks.
- The Shanghai Composite Index jumped 0.9% for the biggest increase in more than five weeks.
Currencies
- The Bloomberg Dollar Spot Index dipped 0.1%.
- The onshore yuan rose 0.2% to 7.0471 per dollar.
- The euro was little changed at $1.1196.
- The Australian dollar jumped 0.8% to $0.681 for the biggest increase in three weeks.
- The Japanese yen climbed 0.1% to 106.12 per dollar.
Bonds
- The yield on 10-year Treasuries rose three basis points to 1.76%.
- Germany’s 10-year yield increased three basis points to -0.55%, the first advance in two weeks.
- Britain’s 10-year yield rose five basis points to 0.53%.
Commodities
- Gold sank 0.4% to $1,495.50 an ounce.
- West Texas Intermediate crude rose 2.3% to $52.26.
--With assistance from David Ingles, Adam Haigh, Andreea Papuc and Laura Curtis.
To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Brendan Walsh in Austin at bwalsh8@bloomberg.net
To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Brendan Walsh, Todd White
©2019 Bloomberg L.P.
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2019-08-08 11:39:00Z
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