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Stocks in Europe edged higher and US futures fell after a mixed session in Asia as investors gauged whether China and America can de-escalate their trade dispute before the G-20 summit later this month. Sterling advanced as investors grapple with the UK’s political turmoil.
The Stoxx Europe 600 Index headed for its first weekly rise in three, though it pared the gain as AstraZeneca Plc’s drop weighed on the gauge after a cancer-drug setback. Futures on the S&P 500 declined after Nvidia Corp gave a disappointing sales forecast and Commerce Secretary Wilbur Ross damped hopes of any imminent trade deal with China. Asian shares were led lower by declines in Japan, even as those in China and Hong Kong climbed. Treasuries and the dollar were steady, while oil held around $57 a barrel in New York.
Equity markets remain volatile as the slowing Chinese economy and uncertain outlook for earnings coincide with investors adjusting to the effects of tightening US monetary policy. Political tensions in Europe from the UK to Italy are also hitting sentiment, while the slump in oil prices this week stoked renewed concerns about the state of global growth as the trade war drags on.
“Maybe if we can get progress in trade relations, that could be a boost,” Jason Browne, chief investment strategist at FundX Investment Group, said in an interview. “But the benefits are likely to get offset from expectations of continued hikes from the Fed. That’s part of the challenge right now.”
The British pound managed a half-hearted rebound after after posting the biggest drop in more than two years on Thursday as several ministers resigned. Prime Minister Theresa May is defying demands to quit as her detractors plot a vote of no confidence over disquiet with her proposed Brexit deal.
Pound Plunge Was Mere Prelude to What May Happen With No Deal
Elsewhere, emerging market stocks edged higher, heading for a third week of gains. Gold climbed alongside most industrial metals.
These are the main moves in markets:
Stocks
The Stoxx Europe 600 Index gained 0.3% as of 10:13. London time. Futures on the S&P 500 Index fell 0.35. The MSCI All-Country World Index climbed 0.1% to the highest in a week. The MSCI Emerging Market Index increased 0.2% to the highest in more than a week.Currencies
The Bloomberg Dollar Spot Index declined less than 0.05%. The euro gained 0.1% to $1.1334, the strongest in a week. The Japanese yen climbed 0.2% to 113.37/$ , the strongest in more than a week on the largest increase in three weeks. The British pound jumped 0.3% to $1.2808. The MSCI Emerging Markets Currency Index decreased less than 0.05%.Bonds
The yield on 10-year Treasuries increased one basis point to 3.12%, the biggest climb in more than a week. Germany’s 10-year yield advanced one basis point to 0.37%, the largest rise in more than a week. Britain’s 10-year yield gained two basis points to 1.39%. The spread of Italy’s 10-year bonds over Germany’s fell nine basis points to 3.0473 percentage points.Commodities
The Bloomberg Commodity Index gained 0.3%. West Texas Intermediate crude jumped 1.3% to $57.20 a barrel, the largest surge in more than six weeks. LME copper fell 0.2% to $6,171.50 per metric ton, the biggest fall in a week. Gold increased 0.2% to $1,215.94 an ounce, the highest in more than a week.* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
