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Stocks Fluctuate, Treasuries Edge Up; Pound Slips: Markets Wrap

Published 12/18/2019, 04:29 PM
Updated 12/18/2019, 04:41 PM
© Reuters.  Stocks Fluctuate, Treasuries Edge Up; Pound Slips: Markets Wrap
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(Bloomberg) -- European stocks edged higher on Wednesday while U.S. equity futures fluctuated and Asian shares were mixed. Bonds also nudged upward while the pound extended its decline.

The Stoxx Europe 600 Index traded slightly higher as most national benchmarks in the region were in the green. Luxury TV and stereo maker Bang & Olufsen (LON:0MRM) plunged after issuing its fourth profit warning in a year. U.S. futures were little changed a day after the S&P 500 Index closed just one index point higher at a new record, amid positive U.S. factory and housing data. However FedEx Corp (NYSE:FDX). plunged in after-market trading after cutting its profit forecast for the second straight quarter.

Asian equities were mixed, with shares falling in Tokyo but rising in Hong Kong and India. The pound slipped, extending a tumble from Tuesday on renewed concern that a no-deal Brexit is possible. The yuan was steady after China’s central bank injected liquidity into the financial system.

With global stocks around all-time highs and the U.S.-China trade accord announced Friday yet to be signed, traders are finding few reasons to bid prices higher. The outlook for America’s monetary policy remains dovish -- two Federal Reserve policy makers reiterated that interest rates are on hold -- yet the miserable results from FedEx (NYSE:FDX) were a reminder of the headwinds to growth.

“We are a little bit cautious going into 2020, not getting too carried away with the optimism that the equity markets are displaying right now,” said Susan Buckley, managing director of global liquid strategies at QIC Ltd. “We are still looking at an outlook of slow growth in 2020.”

Elsewhere, the impeachment inquiry of President Donald Trump comes to a head today, with the House of Representatives set to vote on two articles that will likely set up a January trial in the Senate, where he’s expected to be acquitted.

Meanwhile, West Texas crude pulled back after rising above $61 a barrel for the first time in three months. Bitcoin languished below $7,000.

Here are some key events to watch for this week:

  • Policy decisions are due Thursday from the Bank of Japan and the Bank of England.
  • Revised U.S. GDP data are due Friday.
  • Friday also brings quadruple witching in the U.S., the simultaneous expiration date of stock index futures, stock index options, stock options and single stock futures. Expect elevated trading volume, particularly in the last hour of trading.
These are the main moves in markets:

Stocks

  • Futures on the S&P 500 Index where little changed at as of 8:21 a.m. London time.
  • The Stoxx Europe 600 Index rose 0.1%.
  • The U.K.’s FTSE 100 Index added 0.2%.
  • The MSCI Asia Pacific Index dipped 0.1%.

Currencies

  • The Bloomberg Dollar Spot Index increased 0.1%.
  • The euro decreased 0.1% to $1.1135.
  • The British pound fell 0.1% to $1.3112.
  • The Japanese yen was little changed at 109.43 per dollar.

Bonds

  • The yield on 10-year Treasuries declined two basis points to 1.86%.
  • Germany’s 10-year yield dipped one basis point to -0.30%.
  • Britain’s 10-year yield decreased one basis point to 0.755%.

Commodities

  • West Texas Intermediate crude dipped 0.6% to $60.55 a barrel.
  • Gold climbed 0.1% to $1,477.79 an ounce.

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