Stocks edge lower as miners drop, currencies drift

Sydney - The rally in risk assets took a breather amid further signs that China’s economy is cooling. That weighed on commodities including base metals, which in turned dragged down mining stocks.

Major currencies drifted before a UK rates decision and US inflation data.

Most major European gauges traded in the red following fluctuations in benchmarks from Tokyo to Sydney throughout the Asian session.

The dollar rally lost steam but the currency held most of its recent gains, supported by a slight increase in expectations of a US interest-rate rise this year and President Donald Trump’s push for bipartisan support on tax reform. Oil edged lower after closing at a five-week high amid demand optimism. Copper traded near the lowest level in a month.

Chinese retail sales, industrial production and fixed-asset investment all slowed last month after a lackluster July as efforts to rein in credit expansion and reduce excess capacity in the world’s second-largest economy hit home. Renewed hope for a US tax overhaul was spurred by House Speaker Paul Ryan saying the plan is to have a new tax system functioning next year.

Elsewhere, the Australian economy added 54 200 jobs in August from July, more than twice as many as economists estimated. The jobless rate was steady at 5.6%.

Still to come this week:

• While the BOE is expected to stand pat, its dilemma over how to cope with rising inflation and stagnant wages will be on full view on Thursday in London.

• The highlight for the US session will be the consumer-price data.

Here are the main moves in markets:

Asia

• The Topix index fell 0.3% at the close in Tokyo.

• Australia’s S&P/ASX 200 Index lost 0.1% and South Korea’s Kospi index added 0.7%.

• The Hang Seng Index in Hong Kong slipped 0.4%.

• Benchmarks in China also declined.

• The Aussie jumped as high as 80.16 US cents after the jobs data before pulling back when the China numbers were released.

• The yen was little changed at 110.46 per dollar after slipping 0.3% on Wednesday.

• The MSCI Asia Pacific Index fell 0.1%.

Stocks

• The Stoxx Europe 600 Index decreased 0.1% as of 09:33.

• The MSCI All-Country World Index dipped 0.1%.

• The UK’s FTSE 100 Index sank 0.2% to the lowest in more than a week.

• The MSCI Emerging Market Index advanced 0.1%.

• Futures on the S&P 500 Index declined 0.1%.

Currencies

• The Bloomberg Dollar Spot Index fell 0.1%.

• The euro advanced 0.1% to $1.1898.

• The British pound increased 0.1% to $1.3222.

Bonds

• The yield on 10-year Treasuries rose less than one basis point to 2.19%, hitting the highest in three weeks.

• Germany’s 10-year yield rose one basis point to 0.41%, reaching the highest in almost four weeks.

• Britain’s 10-year yield rose two basis points to 1.164%, the highest in almost six weeks.

Commodities

• Gold gained less than 0.05% to $1 323.84 an ounce.

• West Texas Intermediate crude increased less than 0.05% to $49.32 a barrel, the highest in five weeks.

• Copper fell 0.8% to $2.96 a pound, the lowest in a month.

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