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Sydney - Global stocks slipped as investors approached the end of the best quarter for global equities since 2013, while crude extended a rally.
The MSCI All Country World Index retreated for a second day, led by losses in Chinese shares. A rally in energy producers benefited stocks in Australia and Europe. Crude approached $50 a barrel as oil stockpiles increased less than forecast. Treasuries were flat after Wednesday’s advance, while gold slipped.
The MSCI All-Country World Index is up 6.7% for the quarter, the strongest showing since the three months ended December 2013. Gains in riskier assets have pushed the value of global stocks to $71trn as the reflation trade triggered by Donald Trump’s election shows resilience. Stronger global growth has helped underpin the rally, even amid doubts about the US president’s ability to enact pro-growth policies.
US House Republicans are considering making another run next week at passing the health-care bill they abruptly pulled from the floor. The renewed discussion comes after President Donald Trump and Republican leaders in Congress said they would move on to issues like a tax overhaul.
Meanwhile, Federal Reserve officials continued to offer views on the potential path for interest-rate hikes. Fed Bank of Boston President Eric Rosengren said the central bank should be prepared to raise rates a total of four times in 2017 to guard against overheating the US economy.
Investors are also weighing the impact after the UK’s formal triggering of Brexit on Wednesday. While the move had been broadly telegraphed, the divorce will redefine the country’s relationship with its largest trading partner and end decades of deepening political integration on the continent.
Here are key events the rest of this week:
Other Fed officials are scheduled to make appearances, including Bank of Cleveland President Loretta Mester and Bank of Dallas President Robert Kaplan. The US reports its third estimate for fourth-quarter gross domestic product on Thursday, while Friday’s data include data on personal spending and incomes.
Here are the major moves in the markets:
Stocks
The MSCI All-Country World Index fell less than 0.1% as of 10:23, with the Stoxx Europe 600 Index little changed after closing on Wednesday at the highest since December 2015. Japan’s Topix fell 0.9%.
The index is up 0.6% for the quarter, despite the yen’s strengthening this year. Australia’s S&P/ASX 200 index climbed 0.4%, gaining for a third day to the highest since April 2015 as energy shares jumped. Hong Kong’s Hang Seng fell 0.3%, and the Hang Seng China Enterprises Index lost 0.7%.
The Shanghai Composite dropped 1%, falling for a fourth straight day. Futures on the S&P 500 Index increased less than 0.1%. The benchmark gauge rose 0.1% on Wednesday.
Currencies
The Bloomberg Dollar Spot Index rose 0.1%. The yen added less than 0.1%, heading toward a 5.4% gain for the quarter. The Australian dollar lost 0.2%. The euro fell 0.1% to $1.0754, after declining 0.9% over the previous two days. The British pound lost 0.1% to $1.2426.
Bonds
Yields on 10-year Treasuries were little changed at 2.38%. The rate fell four basis points on Wednesday after rising the same amount in the previous session. Australian 10-year yields fell three basis points to 2.69%.
Commodities
Oil climbed 0.2% to $49.62 a barrel, after surging 2.4% on Wednesday as a bigger-than-forecast decline in US gasoline stockpiles countered an expansion of crude production to the highest level in more than a year. Gold slipped 0.2% to $1 251.23 an ounce. The metal is still up 9% for the quarter.
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