Stocks Extend Gains, Dollar Falls on Tariff Report: Markets Wrap
Bloomberg – U.S. stocks extended gains after a report that the Trump administration is considering lifting tariffs on Chinese imports. The dollar rose and Treasuries fell.
The S&P 500 rallied, with trade-sensitive stocks from Boeing to Caterpillar and technology companies leading the advance after Dow Jones reported the U.S. is weighing lifting the levies. Netflix rose ahead of results due after the market close, while Morgan Stanley declined following a weak quarterly report.
The dollar fell against most major currencies, while the 10-year Treasury yield advanced for a fourth straight day. U.S. crude fell to around $52 a barrel. The pound gained as U.K. Prime Minister Theresa May held talks with political rivals on a new Brexit deal. In Asia, Hong Kong stocks tumbled as some companies plunged more than 75 percent without obvious explanations.
Equities and other risk assets are showing signs of fatigue after a strong start to 2019, when optimism about trade tensions and central bank support overshadowed a litany of concerns about the global economy. But caution has crept back amid the U.S. government shutdown, Brexit impasse and the lingering stress between America and China.
Here are some key events coming up:
Earnings season rolls on with Netflix posting results. Data on U.S. industrial production are due.
These are the main moves in markets:
The S&P 500 Index rose 0.7 percent as of 2:44 p.m. New York time. The Stoxx Europe 600 Index rose less than 0.1 percent. The MSCI Emerging Market Index dipped 0.2 percent.
The Bloomberg Dollar Spot Index gained 0.1 percent. The euro fell 0.1 percent to $1.1379. The Japanese yen rose 0.1 percent to 109.03 per dollar. The British pound gained 0.6 percent to $1.2956, the strongest in two months. The MSCI Emerging Markets Currency Index dipped 0.2 percent.
The yield on 10-year Treasuries rose one basis point to 2.73 percent. Germany’s 10-year yield gained two basis points to 0.24 percent. Britain’s 10-year yield added three basis points to 1.34 percent.
The Bloomberg Commodity Index rose 0.2 percent. West Texas Intermediate crude fell 0.8 percent to $51.89 a barrel. Gold decreased 0.2 percent to $1,291.10 an ounce.