Stocks advance as trade hopes grow; dollar steady

The Stoxx Europe 600 Index climbed for the third day, led by carmakers. Futures indicated gains for US shares, with contracts on the S&P 500 Index breaking through the 200-day moving average for the first time since early December.

Feb 13, 2019 08:02 IST India Infoline News Service

Bull Market
Stocks rose around the globe on Wednesday after President Donald Trump signaled a more conciliatory stance toward China, fueling hopes of a breakthrough in the trade war when talks get underway later in the week. The dollar and Treasuries were little changed.

The Stoxx Europe 600 Index climbed for the third day, led by carmakers. Futures indicated gains for US shares, with contracts on the S&P 500 Index breaking through the 200-day moving average for the first time since early December.

Equities traded higher across Asia after Trump said he’s open to extending a March 1 deadline to raise tariffs on Chinese products if the two sides are near an agreement. Oil extended a rebound from a two-week low after Saudi Arabia pledged to deepen output cuts.

With major central banks seemingly on pause or turning dovish, investor attention now appears firmly focused on the outlook for global trade and the chances of progress at the next round of talks between the US and China starting this week in Beijing. Protectionist measures have been heaping pain on many large economies, many of which are also grappling with a slowdown in growth.

Elsewhere, the New Zealand dollar surged after the central bank hinted at a less dovish policy path than many had expected. The pound edged higher with Brexit talks on track for a March showdown in Brussels. Emerging-market stocks and currencies rose for a second day.

These are the main moves in markets:

Stocks
  • The Stoxx Europe 600 Index climbed 0.3% as of 8:01 AM London time, to the highest in a week.
  • Futures on the S&P 500 Index rose 0.3% to the highest in more than 10 weeks.
  • The MSCI All-Country World Index gained 0.2%.
  • The UK’s FTSE 100 Index increased 0.4%.
  • The MSCI Emerging Market Index jumped 0.4%.

Currencies
  • The Bloomberg Dollar Spot Index gained 0.1%.
  • The euro decreased 0.1% to $1.1316.
  • The British pound rose 0.1% to $1.2902.
  • The Japanese yen dipped 0.2% to 110.70 per dollar, the weakest in almost seven weeks.

Bonds
  • The yield on 10-year Treasuries fell less than one basis point to 2.69%.
  • Germany’s 10-year yield decreased one basis point to 0.13%.
  • Britain’s 10-year yield declined less than one basis point to 1.184%.
  • Japan’s 10-year yield increased one basis point to -0.006%.

Commodities
  • West Texas Intermediate crude rose 0.7% to $53.46 a barrel, the highest in a week.
  • Gold gained 0.1% to $1,311.67 an ounce.

Source: Bloomberg

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