US equity futures edged higher with European equities as President Donald Trump’s executive actions to boost economic aid boosted investor enthusiasm.
Risk takers are climbing even after China said it would sanction US officials against revenge against Hong Kong. Bank shares rally in Europe and oil advanced after Saudi Aramco said demand will continue to improve. Portugal’s 30-year bond yield fell below 1% for the first time since March. Treasuries and the dollar were stable.
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On Saturday, Trump signed four executive orders to retain some assistance, including for unemployment benefits, a temporary tax cut, tax evasion protection and student loan relief.
Trump’s policy announcements come as Democrats and Republicans are still negotiating a broader complementary package for coronavirus. The two sides still lie trillions of dollars apart on general spending and on major issues, including support to state and local governments and the amount of additional unemployment benefits.
“The fresh stimulus provided by President Trump through executive orders is better than not at all and offers a stop-gap solution,” said Lee Hardman, a strategist at MUFG Bank in London. “However, pressure remains on both Democrats and Republicans to reach a more substantial and lasting compromise solution.”
European equities plunged briefly Monday after China retaliated against the US by sanctioning 11 Americans. The list includes Senators Marco Rubio and Ted Cruz, but not members of the Trump administration.
Yet it is another sign of disagreement between the two nations, as the Trump administration takes a tougher line against China in the run-up to it.up to the November elections.
Elsewhere, shares in Lebanese real estate firm Solidere fell as much as 13% after trading for the first time since last week’s deadly explosion in Beirut. The share, seen as a hedge against rising inflation and the sliding Lebanese pound, is up 85% this year.
The largest share in Lebanon declines as trade repays in Beirut
Here are some important events to come:
- Revenues include Barrick Gold, SoftBank, Telstra, Deutsche Telekom, Carlsberg, Tencent and JD.com.
- New Zealand’s policy decision is due on Wednesday.
- China releases a lot of data on Friday, July, including industrial production and retail sales.
- U.S. retail sales are expected Friday, with a smaller increase forecast for July than in the previous two months.
It is not the time to reduce exposure to technology stocks, says Seema Shah, chief strategist at Principal Global Investors, but there is also a case for “increasing allocation to some of the value space,” she said in an interview about “Bloomberg Surveillance.” (
These are the main movements in markets:
Shares
- Futures on the S&P 500 index rose 0.1% since 6:22 a.m. in New York.
- The Stoxx Europe 600 Index rose 0.2%.
- The MSCI Asia Pacific Index did not change much.
- The MSCI Emerging Market Index fell 0.2%.
Currency
- Bloomberg Dollar’s Spotberg Index rose 0.1%.
- The euro fell 0.2% to $ 1.1762.
- The British pound did not change much at $ 1.3048.
- The Japanese yen weakened 0.1% to 106 per dollar.
- The offshore yuan did not change much at 6.9697 per dollar.
Bonds
- Yields on 10-year Treasuries fell by one basis point to 0.55%.
- Yields on two-year treasuries fell by one basis point to 0.12%.
- Germany’s 10-year yield fell two basis points to -0.53%.
- Britain’s 10-year yield fell one basis point to 0.125%.
- Japanese yields of 10 years dipped one basis point to 0.012%.
Commodities
- West Texas Intermediate crude gained 0.6% to $ 41.83 per barrel.
- Brent crude increased 0.3% to $ 44.84 per barrel.
- Gold weakened 0.2% to $ 2,031.17 an ounce.
– With the help of Adam Haigh
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