Global Stocks Extend Gain as Dollar Jump Proves Temporary: Markets Wrap

0
312

 

  • Tech shares buoyed as Apple prepares to unveil latest iPhone
  • European bonds fall with Treasuries as Korea crisis calms

European equities headed for the longest winning streak in five months after the S&P 500 Index led global stocks to a record high on Monday. The dollar couldn’t build on a strong start to the week as concerns about lackluster inflation lingered before key U.S. data.

The Stoxx Europe 600 Index gained for a fifth day, the longest run since April, as the technology sector climbed before Apple Inc.’s much-anticipated iPhone unveiling later on Tuesday. Chip makers STMicroelectronics N.V. and Infineon Technologies AG were among the biggest gainers. Benchmarks from Japan to South Korea and Australia also rose as North Korea stayed silent in the face of another round of sanctions. The greenback edged lower after Monday’s surge, and bonds across Europe followed Treasuries lower.

The appetite for riskier assets that began on Monday was supported by a lack of further provocative developments from North Korea. The UN Security Council approved a watered-down proposal to punish the nation for its latest missile and nuclear tests, omitting an oil embargo and a freeze of Kim Jong Un’s assets.

The road “to be traveled now is one of negotiation rather than provocation,” Jefferies Chief Global Strategist Sean Darby told Bloomberg Television. “The irony at the moment is that for risk-takers the environment is very good. The inflation data is nowhere near as strong to force the hand of the central banks and economic data is actually getting better.”

Terminal subscribers can read more on our Markets Live blog.

Among the key events this week for markets:

  • Apple Inc. reveals its newest products on Tuesday, set to include new iPhones and a fresh version of the Apple watch.
  • The Labor Department’s monthly report on U.S. job openings is Tuesday; retail sales and inflation data are also due this week.
  • After U.K. inflation numbers Tuesday, all eyes will be on Wednesday’s wage data. The Bank of England will almost certainly leave policy unchanged Thursday.
  • Also due this week are data on China’s August industrial production, retail sales and fixed-asset investment.
  • Australia releases jobs data on Thursday.
  • And the Frankfurt Motor Show is still underway.

Here are the main moves in markets:

Asia

  • Japan’s Topix index advanced 0.9 percent at the close in Tokyo.
  • Australia’s S&P/ASX 200 Index added 0.6 percent.
  • South Korea’s Kospi index rose 0.3 percent.
  • The Hang Seng Index in Hong Kong and gauges in China fluctuated.
  • The MSCI Asia Pacific Index climbed 0.4 percent.
  • The Japanese yen dipped 0.1 percent to 109.53 per dollar, the weakest in more than a week.

Stocks

  • The Stoxx Europe 600 Index advanced 0.3 percent as of 8:31 a.m. London time, hitting the highest in five weeks with its fifth consecutive advance.
  • Germany’s DAX Index climbed 0.4 percent, reaching the highest in eight weeks on its sixth consecutive advance.
  • The U.K.’s FTSE 100 Index gained 0.1 percent to the highest in more than a week.
  • Futures on the S&P 500 Index increased 0.1 percent.

Currencies

  • The Bloomberg Dollar Spot Index declined 0.1 percent.
  • The euro advanced 0.2 percent to $1.1974.
  • The British pound climbed 0.3 percent to $1.3204, the strongest in almost six weeks.

Bonds

  • The yield on 10-year Treasuries gained one basis point to 2.14 percent, the highest in more than a week.
  • Germany’s 10-year yield gained one basis point to 0.35 percent, the highest in more than a week.
  • Britain’s 10-year yield advanced two basis points to 1.045 percent, the highest in three weeks.

Commodities

  • Gold dipped less than 0.05 percent to $1,326.97 an ounce, the weakest in more than a week.
  • West Texas Intermediate crude declined 0.2 percent to $47.98 a barrel.

— With assistance by Adam Haigh

LEAVE A REPLY

Please enter your comment!
Please enter your name here