European stocks slipped at the start of trading on Monday amid a retreat in travel stocks. Chinese shares gained after the central bank boosted liquidity in the financial system.
S&P 500 futures pointed to a positive open in the US day, while the dollar weakened against most of its peers. The Shanghai Composition climbed more than 2% after China’s central bank provided liquidity to commercial lenders to help them manage upcoming government sales. Oil won ahead of an OPEC + collection this week.
“The economy will continue to reopen as we move into the end of this year,” Brett Ewing, chief market strategist at First Franklin Financial Services, told Bloomberg TV. “If you can buy into that story, you have to be ahead of money flowing into these value and economic stocks – if you wait for a fax to come out, you’ll probably miss the biggest opportunity right now.”
The US and China have postponed the talks planned for the weekend which focused on progress on the six-month mark of their phase-one trade agreement, people familiar with the matter said. Friction remains between the two powers in the midst of the re-election of President Donald Trump. Trump on Friday officially ordered the Chinese owner of the popular music video app TikTok to sell his American possessions, citing national security reasons.
The nearly 50% recovery in global equities since the March downturns has kept an MSCI gauge close to its full-time high as investors bet on central banks and governments will continue to provide support for sick economies trying to recover to beat virus shutdowns. Minutes to be released Wednesday from the Federal Reserve’s last policy meeting could provide clues as to whether officials plan to introduce new language in September.
Elsewhere, the New Zealand dollar slipped as the country’s elections were delayed due to a dire situation of coronavirus.
Here are some important events to come:
- Revenues include Alibaba, JD.com, Walmart, Home Depot, BHP Group, Nvidia and Qantas.
- The report of the inventory of crude oil comes out on Wednesday.
- The Joint Ministerial Monitoring Committee – the panel reviewing the OPEC + agreement – will meet on Wednesday.
- U.S. unemployment claims for the week ending August 15 are due Thursday.
- China’s prime interest rate is due on Thursday.
- Euro area PMIs will be released on Friday
These are the main movements in markets:
Shares
- Futures on the S&P 500 index have risen 0.2% since 8:17 am London time.
- The Stoxx Europe 600 Index fell 1.4%.
- The MSCI Asia Pacific Index did not change much.
- The MSCI Emerging Market Index gained 0.6%.
Currency
- The Bloomberg Dollar Spot Index fell 0.2%.
- The euro climbed 0.1% to $ 1,1857.
- The British pound jumped 0.2% to $ 1.3111.
- The Japanese yen strengthened 0.2% to 106.44 per dollar.
- The offshore yuan strengthened 0.1% to 6.9343 per dollar.
Bonds
- Yields on 10-year Treasuries dropped two basis points to 0.69%.
- Yields on two-year treasuries fell less than one basis point to 0.14%.
- Germany’s 10-year yield fell two basis points to -0.43%.
- Britain’s 10-year yield dipped one basis point to 0.235%.
- Japanese yields of 10 years fell by one basis point to 0.012%.
Commodities
- West Texas Intermediate crude rose 0.3% to $ 42.35 per barrel.
- Brent crude increased 0.4% to $ 45.11 per barrel.
- Gold strengthened 0.4% to $ 1,953.67 an ounce.
– With the help of Joanna Ossinger, and Cormac Mullen
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