Europe Stocks Fluctuate; Dollar Halts Two-Day Gain: Markets Wrap

Stocks fluctuated in Europe, failing to carry forward the momentum from Asia and Wall Street, where a technology-fueled rally got support from positive economic data and the potential for further stimulus.

Declines in health-care and food shares pulled the Stoxx Europe 600 Index lower after it briefly opened higher. In Asia, an equities benchmark was on track for the biggest gain in two weeks. U.S. index futures climbed in the wake of the Nasdaq 100 setting a fresh record high on Monday as traders sought out companies poised to do best in a stay-at-home economy.

Treasuries maintained losses after data showed U.S. manufacturing expanded in July at the fastest pace since March 2019. The dollar slipped against its major peers after a two-day rally.

Global equities are closing in on levels last seen in February. U.S. stocks got a boost after the White House was said to be exploring whether President Donald Trump can act on his own to extend enhanced unemployment benefits. A slowdown in the rate of coronavirus infections in a number of states also helped sentiment. New cases ebbed in Hong Kong.

“The gentle hints that the global recovery remains on track continued,” Jeffrey Halley, a senior market analyst at Oanda Asia Pacific Pte, said in a note. “Hopes rose that the U.S. might avoid a deeper recession, which was all financial markets needed to send equity markets higher, and for the U.S. dollar to continue recovering some of its recent losses.”

Meanwhile, tension between the U.S. and China continues to simmer. Trump said TikTok will have to close its U.S. business by Sept. 15 — unless there’s a deal to sell the social media network’s American operations.

Elsewhere, West Texas-grade crude oil dipped after rising the most in nearly two weeks. Australian bonds pared losses after the nation’s central bank said it would resume bond buying Wednesday. Gold was steady.

Here are some key events coming up:

  • U.S. data due Tuesday on June factory orders.
  • Euro-zone PMI reports are scheduled for Wednesday.
  • Reserve Bank of India and Bank of England rate decisions due Thursday.
  • Dallas Fed President Robert Kaplan discusses the U.S. economy at Thursday event.
  • July U.S. employment and jobs reports expected Friday.

These are some of the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index decreased 0.5% as of 8:55 a.m. London time.
  • Futures on the S&P 500 Index fell 0.2%.
  • Nasdaq 100 Index futures fell 0.2%.
  • The MSCI Asia Pacific Index increased 1.7%.

Currencies

  • The Bloomberg Dollar Spot Index fell 0.1%.
  • The euro increased 0.2% to $1.1786.
  • The Japanese yen was little changed at 105.92 per dollar.
  • South Africa’s rand weakened 0.1% to 17.2164 per dollar.

Bonds

  • The yield on 10-year Treasuries dipped less than one basis point to 0.55%.
  • The yield on two-year Treasuries rose less than one basis point to 0.11%.
  • Britain’s 10-year yield was unchanged at 0.099%.
  • Germany’s 10-year yield decreased less than one basis point to -0.53%.

Commodities

  • West Texas Intermediate crude fell 0.6% to $40.76 a barrel.
  • Gold was little changed at $1,977.39 an ounce.
  • Iron ore climbed 1.2% to $111.79 per metric ton.

— With assistance by Nancy Moran, and Andreea Papuc

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