Stocks skyrocket as risks decline from Hong Kong to UK: Wrap Markets

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US stock index futures have been growing alongside European and Asian equities, with traders applauding a reduction in political tensions between Italy and Britain and Hong Kong. Treasuries and gold have fallen, while the dollar has fallen.

Contracts on the top three US equity gauges jumped, indicating stocks will resume after Tuesday's dip. All groups in the Stoxx Europe 600 index rose, almost offsetting the dip in August. Manufacturers of luxury goods that depend on sales in Hong Kong, including Richemont and Swatch, have climbed along with inventories in Italy, where a new political coalition has taken shape that could be more conciliatory with respect to sales. 'European Union.

Shares in Hong Kong have been the most jumped since 2018, supporting actions in Asia, after the crisis leader Carrie Lam announced that she had formally withdrawn legislation allowing extraditions to China, detonator for three months of often violent manifestations. In the UK, the pound has risen and stocks have increased after Parliament took a crucial first step in blocking a Brexit without a transaction. The advanced euro and most European bonds have fallen.

Traders are regaining riskier assets as the risks of events seem to diminish, rising from a possible Chinese crackdown in Hong Kong to a confrontation between the European Union and two of its larger members. At the same time, investors remain alert to any news regarding China and the United States. trade talks, with officials from both countries struggling to agree on the next step after Washington rejected Beijing's request to delay tariffs that came into effect this weekend.

Elsewhere, oil rose and the onshore yuan rose after a stronger daily fix than expected. In the United States, while Florida orange groves appear to be escaping the damage caused by Hurricane Dorian, concerns are now turning to soybean, corn and cotton fields, as well as livestock in Georgia and the Carolinas, as the storm heads north.

Here are some key events to come:

• Bank of England Governor Mark Carney will address the Treasury Committee on Wednesday alongside his colleagues Andy Haldane, Jonathan Haskel and Gertjan Vlieghe on the report on inflation. published in August by the bank. he will then appear alone to discuss the UK's economic relations with the EU.
• Fed speakers this week include John Williams of the New York Fed on Wednesday and Fed Chairman Jerome Powell on Friday.
• The report on US employment released Friday is expected to show that the much-watched non-farm payroll increased by 160,000 in August, up from 164,000 the previous month. According to estimates, unemployment is expected to remain stable at 3.7% and the growth rate of the average hourly wage is expected to slow to 3.0%.

These are the main movements on the markets:

stocks

• The Stoxx Europe 600 index rose 0.8% at 7:13 am New York time.
• The futures on the S & P 500 index rose 0.8%.
• The UK FTSE 100 index rose 0.4%.
• The all-country MSCI all-country index rose 0.4%.
• The MSCI Emerging Market Index jumped 1.4%, the highest level for more than a month.

Coins

• The Bloomberg Dollar Spot Index declined 0.4%.
• The euro rose 0.4% to 1.1017 dollar.
• The pound jumped 0.9% to $ 1.2194.
• The Japanese yen has weakened by 0.3% to 106.23 for a dollar.

Obligations

• The 10-year Treasury yield rose four basis points to 1.49%.
• The two-year Treasury yield rose 1 basis point to 1.47%.
• The 10-year British yield climbed eight basis points to 0.489%.
• Germany's 10-year yield jumped six basis points to -0.64%.
• Japan's 10-year yield climbed one basis point to -0.277%.

Basic products

• West Texas Intermediate crude rose 1.4% to $ 54.67 per barrel.
• Gold plunged 0.7% to $ 1,535.74 an ounce.
• Iron ore gained 2.6% to $ 88 a tonne.

– With the help of Adam Haigh and April Ma.

To contact the reporter about this story: Robert Brand in Cape Town at the following address: [email protected]

To contact the editors in charge of this story: Christopher Anstey at [email protected], Samuel Potter at [email protected], Todd White

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