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US index futures have risen slightly with European equities as investors have assimilated the evolution of trade negotiations and comments from a Federal Reserve official about the strength of the larger economy. Treasury securities climbed and the dollar gauge remained close to the peak of the year.
The Stoxx Europe 600 index rose after fluctuating earlier. Contracts for the three major US stock indexes all struggled to gain ground following the rise in the underlying indexes on Monday, when the US Secretary of Commerce announced that the nation would delay restrictions on some of the Chinese company's operations. Huawei Technologies. Inventories grew across Asia, with the exception of the Hong Kong and Shanghai markets.
Government bonds have increased in Europe, with the exception of Italy, where leaders can force early elections. The pound slipped after the Prime Minister announced a proposal to break the stalemate in the Brexit deal with the European Union. Treasury bills recovered after the fall of Monday when Fed Bank of Boston chairman Eric Rosengren objected to further rate cuts. A Bloomberg dollar index has stabilized, close to its record of 2019.
The latest headlines on world trade and interest rates could offer respite to investors frightened by the drop in bond yields. The US decision on Huawei was seen as encouraging for the long-awaited trade pact between the two largest economies in the world. The Chinese company, however, said the temporary relief would not change the fact that it had been treated "unfairly".
Meanwhile, Larry Kudlow, Trump's chief economic advisor, will meet with business leaders this week amid concerns over rising recession opportunities, trade war and soaring markets. . This comes before Fed Chairman Jerome Powell's remarks on the challenges of monetary policy at the Jackson Hole symposium on Friday.
"Our thesis argues that stock markets should do better over the next six months, primarily because of lower interest rates around the world," said Jun Bei Liu, portfolio manager at Tribeca Investment Partners in Sydney. , at Bloomberg TV. "Of course, some problems arise. The first is that the ratings seem incredibly high. And the trade dispute is another uncertainty at this stage. "
Elsewhere, the reaction was moderate when China made borrowing costs cheaper for businesses with the introduction of a revised market benchmark. Oil futures were stable.
Here are some notable events to come:
The minutes of the July Fed meeting will provide details on the discussions that led to the first interest rate cut for ten years on Wednesday. The Bank of Indonesia's decision on the interest rate and press conference with Governor Perry Warjiyo have been announced. On Thursday The Kansas City Federal Reserve is holding its annual Central Bank Symposium in Jackson Hole, Wyoming, from Thursday. Fed Chairman Jerome Powell will present his remarks on Friday.
Here are the main movements on the markets:
stocks
S & P 500 Index Futures advanced 0.1% at 6:23 am New York time. The Stoxx Europe 600 index rose 0.2%. The MSCI Asia-Pacific Index rose 0.6%. Hong Kong's Hang Seng Index fell 0.2%.
Coins
The Bloomberg Dollar Spot Index plunged 0.1%. The pound lost 0.2%. The euro rose less than 0.05% to 1.1081. The yen is appreciated by 0.3% to 106.36 dollars the dollar.
Obligations
The 10-year Treasury yield fell four basis points to 1.56%. Britain's 10-year yield fell three basis points to 0.443%. Germany's 10-year yield fell four basis points to -0.69%. Italy's 10-year yield rose five points to 1.484%.
Basic products
Gold rose 0.5% to $ 1,503.59 per ounce. Copper fell 0.7% to $ 5,733.50 per tonne. West Texas Intermediate crude rose 0.1% %, at 56.29 dollars a barrel.
– With the help of Sybilla Gross and Andreea Papuc.
To contact the reporter about this story: Todd White in Madrid at [email protected]
To contact the editors in charge of this story: Samuel Potter at [email protected], Laura Curtis
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