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Sydney - European stocks edged higher, even as mining companies retreated with industrial metals following China’s credit-rating downgrade. The euro and dollar steadied as investors awaited fresh clues on the path for US borrowing costs.
Miners were the among the worst performers on the Stoxx Europe 600 Index after Moody’s Investors Service reduced its rating on the world’s biggest commodities consumer, triggering declines across copper, nickel, zinc and iron ore.
Still, the gauge managed to advance as most industries gained. The British pound strengthened after two days of losses. Oil extended gains a sixth day as OPEC prepares for a key meeting in Vienna.
Moody’s action on China briefly rattled Asian markets, but against a backdrop of strengthening global growth and the impending release of minutes from the Federal Reserve’s latest meeting, investors appeared to quickly move on. Fed Bank of Philadelphia President Patrick Harker said June “is a distinct possibility” for the US central bank’s second interest-rate increase of 2017.
Here are some key upcoming events:
Canada releases a monetary policy decision on Wednesday, followed by South Korea on Thursday. OPEC will meet in Vienna on Thursday, with major oil producers edging closer to extending an agreement to curb output.
Here are the main moves in markets:
Asia
The Shanghai Composite rose 0.1%, reversing a drop of 1.3%. The Hang Seng also ended higher after an earlier decline of 0.4%. Japan’s Topix index climbed 0.6%, while Indonesia’s benchmark index slumped 0.7%. The Australian dollar slipped 0.1%, paring a steeper drop of as much as 0.5%.
Currencies
The pound rose 0.3% to $1.2996 as of 11:12, following a two-day loss. The euro was little changed at $1.1185. The Bloomberg Dollar Spot Index was flat after climbing 0.3% on Tuesday.
Commodities
Nickel slumped 1.8% and copper fell 0.6%. Iron ore futures dropped 5%. China is the top user of materials. West Texas oil rose 0.6% to $51.80 a barrel, adding to a five-day advance. Gold added 0.1% to $1 252.11 an ounce, after dropping 0.8% on Tuesday.
Stocks
The Stoxx Europe 600 Index added 0.1%. Futures on the S&P 500 were little changed. The underlying gauge rose 0.2% on Tuesday, reaching as high as 2 400.85, two points from a closing record.
Bonds
The yield on 10-year Treasury notes held at 2.28%. Bonds fell during the previous four days.
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