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Sydney - Stocks treaded water as investors awaited the next catalyst, with central bankers including Mario Draghi due to speak on Wednesday and a deadline on Catalonia’s independence claim from Spain looming.
Oil extended gains as signs of declining US stockpiles pointed to healthy demand.
The Stoxx Europe 600 Index was little changed after mixed trading in Asian equities earlier, despite fresh records for US stocks. The dollar was steady with traders continuing to focus on speculation about the next Federal Reserve chief, as volatility in major currencies fell to a three-month low.
The pound extended a decline as investors questioned the Bank of England’s commitment to raise interest rates following testimony on Tuesday from policy makers including Governor Mark Carney.
US President Donald Trump’s choice for the next chair of the Federal Reserve will be unveiled before he leaves Nov. 3 for an 11-day trip to Asia and Hawaii, a person familiar with the process said on Tuesday.
John Taylor was said to have impressed Trump in an interview, buoying gains in the greenback earlier this week given the assumption by many that he would favour tighter policy. Trump also tried to rally support for his tax plan in a speech on Tuesday.
The euro was steady after Tuesday’s slide, sparked by Spain’s downward revision of growth forecasts as cost of the Catalan crisis becomes apparent. Catalonia has until Thursday to back down from a challenge to secede. Stocks in Shanghai gained after Chinese President Xi Jinping laid out a road map to turn the country into a leading global power by 2050.
Here are some key events coming up this week:
• New York Fed President Bill Dudley and Dallas Fed President Robert Kaplan are set to speak on Wednesday.
• European Central Bank President Mario Draghi speaks on Wednesday at the “Structural Reforms in the Eurozone” conference in Frankfurt.
• China releases data for GDP, industrial production and retail sales on Thursday.
• Markets in Malaysia, Singapore and Sri Lanka were closed on Wednesday for holidays.
Here are the main moves in markets:
Asia
• Japan’s Topix index closed less than 0.1% higher in Tokyo.
• Australia’s S&P/ASX 500 Index ended flat, while South Korea’s Kospi index was also little changed.
• Hong Kong’s Hang Seng Index inched lower, while the Shanghai Composite Index was up 0.1%.
• The MSCI Asia Pacific Index was little changed as was the MSCI Emerging Market Index after dropping 0.5% in the previous session.
Stocks
• The Stoxx Europe 600 Index gained 0.1% as of 09:27.
• The UK’s FTSE 100 Index climbed 0.2%.
• Germany’s DAX Index dipped 0.1%, the first retreat in a week and the biggest decrease in more than a week.
• Futures on the S&P 500 Index advanced less than 0.05% to the highest on record.
Currencies
• The Bloomberg Dollar Spot Index decreased less than 0.05%.
• The euro advanced less than 0.05% to $1.1767, the first advance in a week.
• The British pound dipped 0.1% to $1.3181, the weakest in more than a week.
• The Japanese yen declined 0.2% to 112.41 per dollar, the weakest in a week.
Bonds
• The yield on 10-year Treasuries climbed one basis point to 2.31%.
• Germany’s 10-year yield fell less than one basis point to 0.36%.
• Britain’s 10-year yield dipped one basis point to 1.276%, the lowest in almost five weeks.
Commodities
• West Texas Intermediate crude gained 0.5% to $52.14 a barrel, the highest in more than three weeks.
• Gold fell 0.1% to $1 283.73 an ounce, the weakest in more than a week.
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