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Stocks Pare Losses on Trade Talks; Treasuries Drop: Markets Wrap

Anindita Ghosh 0

Stocks were mixed on Tuesday as a slew of trade headlines continued to buffet markets. Treasury yields rose and the dollar was steady.

The Stoxx Europe 600 Index fluctuated in a narrow range as banks declined and telecommunications companies gained. Futures on the S&P 500 fell, though they trimmed losses after China confirmed its vice premier would attend trade talks in Washington this week. Korean and Japanese shares slid as both markets reopened after holidays, while stocks in Shanghai and Hong Kong advanced. Oil was steady as the Trump administration dispatched warships to the Middle East in a warning to Iran.
Global energy shares fall to 19-year relative low even as oil prices rise

Investor sentiment remains fragile as traders wait for the next development in the trade dispute between the world’s two biggest economies. China’s government confirmed Tuesday that Vice Premier Liu He would visit the the U.S. for trade talks on May 9 and 10, after American Trade Representative Robert Lighthizer told reporters Monday the Trump administration still plans to increase duties on imports from the Asian nation.

“Reality is setting in that they are not going to get the master deal, the grand deal that they are hoping for and there’s a lot of work to be done,” Oliver Pursche, Bruderman Asset Management’s chief market strategist, told Bloomberg TV. “Our best guess is that these tariffs will be implemented on Friday, but will then be reversed relatively quickly.’’

Elsewhere, the lira slumped after Turkey ordered a re-run of mayoral elections in Istanbul, overturning a rare defeat for President Recep Tayyip Erdogan. The Aussie dollar climbed after the central bank refrained from cutting rates.

Here are some notable events coming up:

  • The Reserve Bank of New Zealand meets Wednesday.
  • China releases trade data Wednesday, and the U.S. does so on Thursday.
  • South Africa holds national elections Wednesday.
  • China reports on inflation Thursday. The U.S. releases the April CPI report Friday.
  • A Chinese trade delegation is expected to arrive in Washington for talks.

These are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index added 0.1 percent as of 8:15 a.m. in London.
  • Futures on the S&P 500 Index fell 0.2 percent.
  • The MSCI All-Country World Index dipped less than 0.05 percent.
  • The U.K.’s FTSE 100 Index fell 0.3 percent.
  • The MSCI Emerging Market Index rose 0.2 percent.

Currencies

  • The Bloomberg Dollar Spot Index fell less than 0.05 percent.
  • The euro increased 0.1 percent to $1.1208, the strongest in a week.
  • The British pound gained 0.2 percent to $1.3123.
  • The Japanese yen rose less than 0.05 percent to 110.71 per dollar, the strongest in almost six weeks.

Bonds

  • The yield on 10-year Treasuries increased two basis points to 2.49 percent.
  • Germany’s 10-year yield rose one basis point to 0.01 percent.
  • Britain’s 10-year yield fell three basis points to 1.193 percent.
  • Japan’s 10-year yield fell one basis point to -0.049 percent.

Commodities

  • West Texas Intermediate crude increased 0.1 percent to $62.29 a barrel.
  • Gold advanced less than 0.05 percent to $1,281.58 an ounce, the highest in a week.
  • The Bloomberg Commodity Index dipped 0.1 percent to the lowest in almost four months