US futures climb with stocks as bonds fluctuate: Markets wrap


  • ASEAN+
  • Thursday, 16 Jan 2020

NEW YORK (Bloomberg): American equity futures climbed alongside European shares on Thursday (Jan 16) in the wake of the signing of the US-China trade deal, an event that helped drive global stocks to record highs. Bonds fluctuated and the dollar was steady.

Contracts for all three main American gauges pointed to more gains after Wall Street hit new records a day earlier.

Those on the Nasdaq 100 set the pace after tech bellwether Taiwan Semiconductor Manufacturing Co projected quarterly revenue well above analysts’ estimates.

The Stoxx Europe 600 Index tracked the move, though carmakers were among losers even as data showed record sales in the region in December. Asian equities were mixed. Treasuries drifted after two days rising. West Texas crude hovered around US$58 a barrel.

The formal signing of a phase one deal between the world’s two biggest economies has put the trade war on hold as far as many investors are concerned.

Assuming the detente lasts, traders will be seeking fresh catalysts, most likely in economic data and the ramp-up of earnings season. Morgan Stanley is among the names reporting before the open in New York.

"Given the amount of speculation by the markets and commentary by officials ahead of Wednesday’s signing, it is unsurprising markets have not rallied too strongly upon final signing, ” said Hannah Anderson, a strategist at JPMorgan Asset Management.

"Markets will likely continue to price in an elevated risk premium, which could be a source of volatility throughout 2020.”

Elsewhere, the ruble slipped in the wake of Russian President Vladimir Putin’s call for sweeping constitutional changes and subsequent replacement of his long-serving prime minister.

Soybeans slumped overnight after China signalled purchases would be based on demand, rather than a pre-set amount.

Here are some events to watch for this week:

Turkey and South Africa both set interest rates on Thursday.

Earnings are due from Morgan Stanley and Bank of New York Mellon Corp. on Thursday.

China GDP, along with key monthly data for December, come on Friday.

A final reading on the euro-zone’s December inflation is also due on Friday.

There are some of the main moves in markets:

Stocks

Futures on the S&P 500 Index increased 0.3% as of 9:41 a.m. London time.

The Stoxx Europe 600 Index advanced 0.2%.

The MSCI Asia Pacific Index climbed 0.2%.

Currencies

The Bloomberg Dollar Spot Index was little changed.

The euro was little changed at $1.1155.

The British pound gained 0.2% to $1.3062.

The Japanese yen dipped 0.1% to 109.99 per dollar.

Bonds

The yield on 10-year Treasuries climbed less than one basis point to 1.79%.

Germany’s 10-year yield dipped one basis point to -0.21%.

Britain’s 10-year yield gained less than one basis point to 0.657%.

Commodities

West Texas Intermediate crude gained 0.4% to $58.03 a barrel.

Gold fell 0.1% to $1,555.27 an ounce. - Bloomberg

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Market , wrap , Jan 16

   

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