Stocks Advance As Investors Mull Outlook For Trade: Markets Wrap

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European stocks advanced on Friday and U.S. equity futures pointed to a marginally stronger open as investors digested the latest headlines on the trade dispute between America and China. Treasuries drifted.

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The Stoxx Europe 600 Index rose led by commodity and energy companies after oil's strongest close since September. Futures contracts on all three main American equity gauges ticked higher. Japanese shares steadied after three days of declines, while stocks climbed in Australia and Hong Kong, and slipped in China. The dollar was mostly steady.

It's been a mixed picture on the trade front this week. Chinese Vice Premier Liu He has invited Robert Lighthizer to Beijing for further talks later this month, according to people familiar with the matter, and Washington will likely postpone new tariffs scheduled for December even if there's no deal by then, the South China Morning Post reported. However, President Donald Trump may soon sign into law a bill supporting Hong Kong's protesters, a move likely to anger China.

Meanwhile, Chinese President Xi Jinping said his nation wants to work toward a phase one trade agreement with the U.S. on the "basis of mutual respect and equality," his first comments on a partial deal.

"The market is looking for some bullish signal that things aren't going to get worse and that we're not going to see further deterioration in trade talks between the U.S. and China," Erin Browne, a portfolio manager at Pacific Investment Management Co., told Bloomberg TV. "They just don't want to see further escalation."

Elsewhere, oil edged lower after climbing to a nine-week high. Gold reversed earlier losses.

These are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index jumped 0.5% as of 8:13 a.m. London time.
  • Futures on the S&P 500 Index climbed 0.2%.
  • Italy's FTSE MIB Index gained 0.4%.
  • The Shanghai Composite Index fell 0.6%.

Currencies

  • The Bloomberg Dollar Spot Index was little changed.
  • Sterling was little changed at 0.8563 per euro.
  • The euro was unchanged at $1.1059.
  • The Japanese yen was little changed at 108.64 per dollar.
  • South Africa's rand jumped 0.3% to 14.6406 per dollar.

Bonds

  • The yield on 10-year Treasuries increased less than one basis point to 1.77%.
  • Germany's 10-year yield climbed less than one basis point to -0.32%.
  • Italy's 10-year yield gained two basis points to 1.2%.
  • Japan's 10-year yield jumped three basis points to -0.074%.

Commodities

  • West Texas Intermediate crude dipped 0.3% to $58.40 a barrel.
  • Iron ore climbed 1.8% to $86.57 per metric ton.
  • Gold edged up 0.1% to $1,466.54 an ounce.
  • Arabica coffee gained 4.8% to $1.16 a pound.

The post Stocks Advance As Investors Mull Outlook For Trade: Markets Wrap appeared first on Investor's Business Daily.

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