Category: Economics
Stocks Drift Amid Mixed Earnings; Treasuries Gain: Markets Wrap
Stocks in Europe struggled for traction alongside U.S. index futures as a raft of corporate earnings and economic data presented a somewhat muddy outlook for global growth. Treasuries rose after dropping for three days.
The Stoxx Europe 600 Index erased a modest gain after data showed the euro-area economy remained close to stagnation last month amid a broad downturn in Germany. Global cleaning giant ISS A/S slumped after cutting it full-year outlook and Adidas AG fell as third-quarter earnings momentum slowed. Banks advanced after Societe Generale SA strengthened its key capital ratio even as trading revenue disappointed. S&P 500 futures edged lower after a lackluster session in Asia, where benchmarks were up in Japan and Mumbai, but down in Shanghai and Sydney.
Japan’s benchmark bond yield climbed to its highest in more than five months as an auction was met with weaker-than-expected demand amid a global debt sell-off. The yuan traded stronger than 7 per dollar for a second day, while the dollar dipped as investors awaited fresh developments on the U.S.-China trade front. Bloomberg’s gauge of raw-material spot prices climbed to its highest level since April.
A wave of interest-rate cuts by central banks including the Federal Reserve and mounting hopes of a U.S.-China trade deal buoyed confidence in financial markets just as key economic indicators show signs of stabilization. While the latest data from Europe shows a robust recovery may not be on the cards, the relative improvement eased fears that the global economy was hurtling toward a recession, prompting traders to temper expectations for further monetary easing.
Elsewhere, oil retreated, while gold ticked higher following a slump Tuesday. Emerging-market stocks declined for the first time in five days.
Here are some key events coming up this week:
