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Shares in Europe and US futures advanced on Wednesday, driven by gains in energy companies as a result of higher oil prices.
Movements took place even as markets in the Asia-Pacific region were mainly geared towards persistent trade problems.
The Stoxx Europe 600 has grown by 0.5% recently, thanks to gains from oil and gas companies and mining stocks. Futures revealed an opening gain of 0.2% for the S & P 500 a day after a jump in energy values, which resulted in a rise in the benchmark.
Concern over the impact of a growing trade conflict between the two largest economies in the world has weighed on foreign markets in recent months. Reports Tuesday that China will ask the World Trade Organization for permission to impose sanctions on US investors, and this just days after President Trump said he was ready to impose a third set of tariffs on 267 billion dollars of Chinese products.
"There is a lot more macroeconomic uncertainty, and a lot of things to do with the fears associated with the trade war," said Isabelle Mateos y Lago, chief multi-asset strategist at BlackRock. "It's not an environment in which many people are enthusiastic about risk."
Rising commodity prices helped boost European equities on Wednesday. Brent crude oil rose 0.3% to $ 79.29 a barrel, based on gains after forecasts that oil stocks could remain relatively low and Libya and Hurricane Florence threaten the coast. East of the United States. 1.2% to $ 5,952 per tonne. This allowed the Stoxx Europe 600 oil and gas subindex to grow 1.6%, while the Core Resource subindex rose 1.4%.
Mateos y Lago said that it favors US equities in the current context, adding that US companies have profits [and] more dynamic sales growth. "
Strong US growth and corporate earnings helped support US inventories, while many of the more export-oriented markets in Europe and Asia have been facing trade tensions and a lack of business. resilience of developing economies. The S & P 500 is up 8% this year, while the Stoxx Europe 600 is down about 3% and the MSCI Emerging Markets Index has fallen more than 13%.
In the Asia-Pacific region, Hong Kong's Hang Seng Index continued to fall on Wednesday, down 0.3% after entering the bear market – generally defined as a 20% drop from its recent high . The Shanghai Composite of China fell 0.3%, bringing losses since the beginning of the year to nearly 20%. The Nikkei's stock market average was down 0.3%.
The yield on the 10-year Treasury bond fell to 2.964%, according to Tradeweb, against 2.979% on Tuesday. Bond investors will wait for Thursday's meetings of the European Central Bank and the Bank of England, where the authorities should keep rate changes in abeyance.
Investors will also monitor whether the Turkish central bank raises its interest rates on Thursday to contain inflation in the event of a collapse of the lira. Turkey has been on the decline in emerging markets over the last few months, raising concerns about a broader malaise in developing economies.
"The question is whether the Turkish central bank can take the right policy [decision] and calm some of the volatility, "said Mohammed Kazmi, portfolio manager at Union Bancaire Privée.
"The theme of emerging markets under pressure is not necessarily disappearing."
The WSJ Dollar Index, which measures the greenback against a basket of 16 currencies, rose 0.1% Thursday. A stronger dollar has been another factor weighing on emerging markets recently, putting pressure on foreign governments and companies that borrowed in dollars.
Gold was slightly lower at $ 1,200.30 an ounce.
Write to Christopher Whittall at [email protected]
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