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Asia Stocks Set for Mixed Start; Dollar Advances: Markets Wrap

Published 12/18/2019, 05:46 AM
Updated 12/18/2019, 06:20 AM
© Reuters.  Asia Stocks Set for Mixed Start; Dollar Advances: Markets Wrap
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(Bloomberg) -- Asian stocks were set to open mixed Wednesday as investors take a breather after the partial U.S.-China trade deal that sent global equities close to record highs. The dollar gained while 10-year Treasuries were steady.

Futures were little changed in Japan, fell in Australia and climbed in Hong Kong. The S&P 500 Index closed just one index point higher at a new record amid positive U.S. factory and construction data. The pound dropped the most in a month as concerns about a no-deal Brexit resurfaced.

With global stocks at all-time highs, concerns linger over the details of the U.S.-China trade accord. At the same time, the improving global economy is prompting investors to reassess the path for monetary policy in 2020. Two Federal Reserve policy makers reiterated that interest rates are on hold unless there’s a material change in the outlook for the U.S. economy.

Elsewhere, West Texas intermediate crude briefly touched $61 a barrel for the first time in three months as strengthening outlooks for manufacturing and trade buoyed demand prospects. Bitcoin’s woes continued, as the digital currency 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.
  • Federal Reserve district bank presidents including Eric Rosengren of Boston and John Williams (NYSE:WMB) of New York are scheduled to speak this week.
  • Revised U.S. GDP data are due Friday.
  • Friday 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

Currencies

  • The Japanese yen was little changed at 109.51 per dollar.
  • The offshore yuan fell 0.1% to 6.9978 per dollar.
  • The Bloomberg Dollar Spot Index climbed 0.2%.
  • The euro was little changed at $1.1146.
  • The British pound sank 1.5% to $1.3132.
Bonds

  • The yield on 10-year Treasuries held at 1.87%.
Commodities

  • West Texas Intermediate crude gained 0.7% to $60.62 a barrel, the highest in three months.
  • Gold was at $1,476.53 an ounce.

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