Global Stocks Drift As Trade Remains In Focus: Markets Wrap


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.


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.

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.

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