US stocks pare gains as Trump pressures Apple

The S&P 500 Index climbed 0.3% as of 10:12 AM in New York, while the Dow Jones Industrial Average gained 0.2%, and the Nasdaq Composite Index dipped 0.1%.

Sep 10, 2018 02:09 IST India Infoline News Service

Stocks pared earlier gains as shares of Apple and Asia-based suppliers slumped after President Donald Trump insisted his trade war with China will spur more manufacturing jobs in the US.

The S&P 500 had opened higher, breaking a four-day slide. The Stoxx Europe 600 Index fluctuated in early trading before finding its feet as Italy’s benchmark surged, buoyed by official government comments over the weekend that the country’s impending budget will be pragmatic and within EU fiscal rules.

Emerging-market shares slid. Equities sank in Shanghai and Hong Kong, with the latter’s benchmark nearing a bear market in the wake of Trump’s weekend threat to step up his trade showdown with China.

The pound jumped after European Union (EU) chief Brexit negotiator Michel Barnier said a deal with the UK is “realistic” and “possible” within eight weeks.

Worries from the trade ructions to emerging-market turmoil continue to mar the outlook for global equities, with the infection even spreading to US stocks in last week’s holiday-shortened trading.

Trump’s signal that he’s ready to target a sum of goods equal to virtually all imports from China came as data showed a healthy American labor market with signs of wage inflation that could clear the way for two more Federal Reserve interest rate hikes this year.

These are the main moves in markets:

Stocks
  • The Stoxx Europe 600 Index climbed 0.5%, the largest increase in two weeks.
  • The S&P 500 Index climbed 0.3% as of 10:12 AM in New York, while the Dow Jones Industrial Average gained 0.2%, and the Nasdaq Composite Index dipped 0.1%.
  • The UK’s FTSE 100 Index fell 0.1%.
  • Germany’s DAX Index climbed 0.2%.
  • The MSCI Emerging Market Index sank 1.1% to the lowest in 14 months.
  • The MSCI Asia Pacific Index declined 0.6%, reaching the lowest in about 13 months on its eighth consecutive decline.

Currencies
  • The Bloomberg Dollar Spot Index fell 0.2%.
  • The euro gained 0.5% to $1.1584.
  • The British pound increased 0.8% to $1.3028.
  • The Japanese yen decreased 0.1% to 111.10 per dollar.

Bonds
  • The yield on 10-year Treasuries fell less than one basis point to 2.94%.
  • Germany’s 10-year yield increased two basis points to 0.40%, the highest in more than a week.
  • Britain’s 10-year yield decreased less than one basis point to 1.455%.
  • Italy’s 10-year yield declined 10 basis points to 2.936%.

Commodities
  • West Texas Intermediate crude gained 0.5% to $68.07 a barrel, the largest rise in more than a week.
  • Gold fell 0.2% to $1,194.02 an ounce.

Here are some key events coming up this week:
  • Policy decisions from the Bank of England and the European Central Bank on Thursday.
  • Russian President Vladimir Putin and Japanese Prime Minister Shinzo Abe will meet.
  • Apple unveils its latest iPhones on Wednesday
  • Australia employment is due on Thursday.
  • China releases August industrial production, retail sales data on Friday.
  • US retail sales, industrial production, consumer sentiment on Friday.

Source: Bloomberg

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