Markets

Europe Stocks Fall, Bonds Follow Treasuries Higher: Markets Wrap

Start your day with what’s moving markets in Asia. Sign up here to receive our newsletter.

European stocks slipped after a mixed Asian session and government bonds followed Treasuries higher as investors continued to digest the reduced the odds of another U.S. interest rate increase this year.

The Stoxx Europe 600 Index retreated led by banks, while the euro also drifted lower before the European Central Bank releases minutes of its last policy meeting. Gold and tin were the best performers among metals, and zinc traded near a 10-year high. Bond yields slipped after Fed minutes released on Wednesday showed debate among policy makers about whether higher rates are needed given inflation remains benign.

The tumult that swept markets in the wake of heightened tensions between the U.S. and North Korea last week has eased, bringing down gauges of equity and bond volatility and repairing most of the damage done to stock markets. But political angst isn’t over; investors will likely keep one eye on Washington, where President Donald Trump disbanded two high-profile business advisory councils amid the fallout from his response to the weekend violence in Virginia.

In Europe, policy makers have signaled that they are getting closer to phasing out quantitative easing. Meanwhile, Reuters reported that ECB President Mario Draghi won’t deliver a fresh policy message at the Federal Reserve’s annual symposium in Jackson Hole, Wyoming later this month.
Terminal subscribers can read more on our Markets Live blog.

Here are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index dipped 0.1 percent as of 8:31 a.m. in London.
  • Futures on the S&P 500 Index advanced less than 0.05 percent.

Currencies

  • The euro dipped 0.1 percent to $1.1759.
  • The Bloomberg Dollar Spot Index was little changed.
  • The British pound decreased less than 0.05 percent to $1.2886.

Bonds

  • The yield on 10-year Treasuries advanced one basis point to 2.23 percent.
  • Britain’s 10-year yield dipped two basis points to 1.087 percent.
  • Germany’s 10-year yield decreased one basis point to 0.43 percent.

Commodities

  • Gold increased 0.4 percent to $1,288.10 an ounce.
  • Copper on the London Metal Exchange advanced less than 0.05 percent to $6,534.50 per metric ton, the highest in almost three years.
  • West Texas Intermediate crude climbed 0.2 percent to $46.88 a barrel.

Leave a Reply

Your email address will not be published. Required fields are marked *

3 × four =