Stocks in Asia drifted in a lackluster session and U.S. and European futures were little changed as investors awaited fresh news on U.S.-China trade discussions. Ten-year Treasury yields retreated following gains earlier this week.X
Stocks ended flat in Tokyo, and fell in Shanghai and Sydney. Earlier, the S&P 500 Index closed marginally lower as growth in U.S. service industries pushed market pricing for another rate cut from the Federal Reserve further out. The yuan traded stronger than 7 per dollar for a second day. The yen ticked higher, while the dollar was little changed.
China is seeking a U.S. roll-back on tariffs before President Xi Jinping agrees to take the politically sensitive step of heading to the U.S. to ink a deal. Meantime, traders continued to temper expectations for monetary easing in the U.S. as the latest reading on the non-manufacturing sector offered some comfort against a backdrop of fragile global economic growth.
"It seems like the worries in the manufacturing sector are not spilling over, at least to a critical degree, into the services sector," Yelena Shulyatyeva, senior U.S. economist at Bloomberg Economics, told Bloomberg TV.
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Elsewhere, oil retreated, while gold ticked higher following a slump Tuesday. Bond yields in Australia climbed to the highest since late July, and Japanese rates also climbed.
Here are some key events coming up this week:
- Earnings are due from companies including: SoftBank (SFTBY) and BMW (BMWYY) on Wednesday; Walt Disney (DIS), Toyota (TM), Deutsche Telekom (DTEGY) on Thursday.
- Regional Federal Reserve presidents including Charles Evans, John Williams and Patrick Harker speak at events on Wednesday.
- Bank of England monetary decision is due Thursday.
- The USDA World Agricultural Supply and Demand Estimates Report for November comes out Friday.
These are the main moves in markets:
- The MSCI Asia Pacific Index fell 0.1% as of 4:14 p.m. in Tokyo.
- Japan's Topix index was flat.
- Australia's S&P/ASX 200 Index fell 0.6%.
- Hang Seng Index fell 0.2%.
- Shanghai Composite Index lost 0.4%.
- The S&P 500 dipped 0.1% on Tuesday. Futures were little changed.
- Euro Stoxx 50 futures dipped 0.1%.
- The yen rose 0.2% to 108.97 per dollar.
- The offshore yuan was little changed at 7.0044 per dollar.
- The Bloomberg Dollar Spot Index was little changed.
- The euro bought $1.1075, little changed.
- The yield on 10-year Treasuries fell one basis point to 1.84%.
- Australia's 10-year yield added seven basis points to 1.27%.
- West Texas Intermediate crude oil slid 0.4% to $57.02 a barrel.
- Gold rose 0.1% to $1,484.67 an ounce.
The post Global Stocks Drift As Trade Remains In Focus: Markets Wrap appeared first on Investor's Business Daily.