(Bloomberg) -- European stocks rose while Asian shares were mixed after the latest U.S.-China tariff hikes kicked in. The dollar strengthened.
The Stoxx Europe 600 opened higher, led by financial-services shares. Shares in Japan, Hong Kong and Australia declined in thin volumes, a day after President Donald Trump’s duties on $110 billion in Chinese imports came into effect alongside China’s countermeasures. Stocks in Shanghai rose, however, as authorities vowed to support liquidity and growth. S&P 500 futures recovered most of an earlier 1.1% decline.
Cash Treasuries won’t trade and U.S. equity markets will be shut for the Labor Day holiday. America’s southeastern coast braced for Hurricane Dorian, thought to be the most powerful storm to hit land anywhere in the Atlantic, after it inflicted colossal damage to the Bahamas. Treasury futures were steady.
Investors are still reeling from a volatile August that saw a collapse in Treasury yields and declines for equities globally. A drop in the official China purchasing managers’ index on Saturday highlighted the pressure facing the world’s second-largest economy from weaker demand and escalating trade tensions with the U.S.
Also keeping a lid on sentiment are protests in Hong Kong, where a senior official said he won’t rule out imposing an emergency law in a bid to wrestle back control after protesters caused major disruptions to the city’s international airport over the weekend.
“Broad market activity and trading volume are likely to be somewhat muted today,” Simon Ballard, a macro strategist at First Abu Dhabi Bank, wrote in a note. While it should mean a quiet start to the week, “the net cautious tone seems set to dominate investor sentiment,” he said.
Elsewhere, Argentina’s government is imposing currency controls to halt the flight of dollars out of the country as it teeters on the brink of default. Turkey’s lira rose after data showed the economy shrank less than expected in the second quarter. The pound slid for a fourth session against the dollar as U.K. Prime Minister Boris Johnson escalated a row with lawmakers from his own Conservative Party and as prospects for a no-deal Brexit increase.
Here are some key events coming up:
- Australia sets monetary policy on Tuesday.
- Fed speakers include New York Fed’s John Williams on Wednesday and Fed chair Jerome Powell on Friday.
- The U.S. jobs report on Friday is projected to show nonfarm payrolls rose by 165,000 in August, slightly above the month prior. Estimates of the employment situation are for unemployment to be steady at 3.7% and the average hourly earnings rate of increase to slow to 3.0%.
These are the main moves in markets:
Stocks
- Futures on the S&P 500 Index fell 0.2% as of 9:24 a.m. London time.
- The Stoxx Europe 600 Index increased 0.3%.
- Germany’s DAX Index gained 0.1%.
- The U.K.’s FTSE 100 Index jumped 0.8%.
- The MSCI Asia Pacific Index fell 0.3%.
Currencies
- The Bloomberg Dollar Spot Index increased 0.1%.
- The euro was little changed at $1.0984.
- The British pound sank 0.4% to $1.2107.
- The Japanese yen was little changed at 106.26 per dollar.
- The Hong Kong dollar was little changed at 7.8429 per U.S. dollar.
Bonds
- Germany’s 10-year yield advanced one basis point to -0.69%.
- Britain’s 10-year yield fell three basis points to 0.451%.
Commodities
- Gold gained 0.1% to $1,522.40 an ounce.
- Brent crude fell 0.3% to $59.10 a barrel.
- Iron ore increased 6.3% to $86.54 per metric ton.
--With assistance from Katherine Chiglinsky, Adam Haigh and Andreea Papuc.
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
©2019 Bloomberg L.P.
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2019-09-02 06:33:00Z
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