Publications
Partners
New York - US stocks fluctuated after a three-day advance, while the dollar’s retreat abated amid European data that added to signs the global economy remains on firm footing. Brazilian assets stabilised.
The S&P 500 Index’s rebound from the worst selloff of the year stalled after three days of gains. UK equities rose a third day, the pound pared its decline and gilts were steady after a terrorist attack killed at least 22 people at a concert in Manchester.
The dollar stabilised after three days of losses. Brazil’s real was little changed as S&P Global Ratings considers a rating change. South Africa’s rand rallied, and oil topped $51 a barrel.
Confidence is building in the European economy, with data on Tuesday confirming the German economy is firing on all cylinders and France’s is gathering momentum, while a eurozone Purchasing Managers’ Index showed manufacturing in the bloc expanded at the fastest pace in more than six years.
That’s bolstering the case for investing in the region as political turmoil in Washington rumbles on, diverting attention from President Trump’s spending and tax plans.
“Europe’s growth numbers aren’t knocking the skin off the ball, but they are less volatile and it’s doing relatively well compared to the US, UK and Japan,” said Bill Blain, head of capital markets at London-based Mint Partners. “More than a few global investors have lost faith in the US recovery and Trump jump.”
The US president in March asked Director of National Intelligence Daniel Coats and NSA Director Michael Rogers to publicly deny existence of any collusion between his campaign and the Russian government, the Washington Post reported, citing unidentified current and former officials.
Here are some key upcoming events:
Trump’s tour will head to Group of Seven and NATO meetings in Europe. Sales of US new homes in April probably held near a nine-year high, Commerce Department figures are projected to show on Tuesday. Minutes from the last Federal Reserve policy meeting will be released Wednesday, offering more clues to the path of interest rates.
OPEC will meet in Vienna on Thursday, with major oil producers edging closer to extending an agreement to curb output. South Korea, Canada, South Africa and Thailand set interest rates this week.
And here are the main moves in markets:
Stocks
The S&P 500 climbed less than 0.1% to 2 394.74 at 14:53. The gauge has advanced 1.7% in four days and now sits 0.2% below its record from May 15. The Stoxx Europe 600 Index gained 0.3%. The U.K.’s FTSE 100 Index added 0.1%. Brazil’s Ibovespa Index rose 0.3%.
Currencies
The Bloomberg Dollar Spot Index was flat, trading near the lowest level since November 4. The yen gained 0.1% to 111.14 per dollar. The pound traded 0.2% down at $1.2976 after weakening as much as 0.4%.
The euro dropped 1% to $1.1221. Brazil’s real weakened 0.3% to 3.2755 per dollar after falling to a five-month low last week amid corruption allegations against President Michel Temer.
Bonds
The yield on 10-year Treasury notes fell one basis point to 2.24%. German benchmark yields rose one basis point while those the UK dropped one basis point.
Commodities
WTI crude fell 0.1% to $51.06, after jumping above $51 per barrel on Monday. Gold dropped less than 0.1% to $1 259.97 an ounce.
Asia
Japan’s Topix dropped 0.2% after swinging between gains and losses. South Korea’s Kospi rose 0.3%. Hong Kong’s Hang Seng fell 0.1%. The Shanghai Composite Index lost 0.5%.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
