Breaking News
0

GLOBAL MARKETS-Stocks inch higher as investors look ahead to trade talks, Brexit

Stock MarketsFeb 11, 2019 17:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. GLOBAL MARKETS-Stocks inch higher as investors look ahead to trade talks, Brexit

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

* European shares bounce from one-week low

* Chinese shares resume trading, Shanghai shares up 1 pct

* Dollar near six-week high, U.S.-China trade talks eyed

* Pound slips after UK GDP data

By Ritvik Carvalho

LONDON, Feb 11 (Reuters) - World stock markets edged higher on Monday, as investors eyed the resumption of trade talks between the United States and China and watched for signs of progress on Brexit.

European markets took their cue from a 1 percent bounce in Chinese shares, which resumed trading after the week-long Lunar New Year holiday.

The pan-European STOXX 600 index .STOXX rebounded from one-week lows, helped by some deal-making and gains in mining and banking shares. It was up 0.65 percent. .EU

U.S. stock futures indicated a positive open on Wall Street.

Worries about a slowdown in global growth, an ongoing U.S.-China trade dispute and U.S. politics have been foremost in investors' minds.

Safe-haven bonds and the dollar have gained amid the prolonged uncertainty, but stocks have also made a good start to the year, with MSCI'S All-Country World Index .MIWD00000PUS up nearly 10 percent. The index was 0.1 percent higher on Monday.

The dollar .DXY reached its highest in six weeks against a basket of currencies, rising for an eighth consecutive day as investors piled into the world's most liquid currency. FRX/

This week's focuses for investors are likely to be the resumption of U.S.-China trade talks and Brexit, John Hardy, head of FX strategy at Saxo Bank, said in a note.

"The chief focus will be on that broad U.S. dollar picture and whether resistance gives way for another leg higher, driven by preference for the liquidity of the U.S. dollar as the global outlook remains concerning on all fronts," he said.

"The risk remains that investors are unwilling to commit to a breakout until we see what emerges from U.S.-China trade negotiations and Brexit."

Just six weeks before Britain is due to leave the European Union, it still has no exit plan in place. Data on Monday showed the British economy grew last year at its slowest since 2012. struck an upbeat note as the trade talks resumed, but it also expressed anger at a U.S. Navy mission through the disputed South China Sea, casting a shadow over the prospect for improved Beijing-Washington ties. two sides are trying to come up with a deal before March 1, when U.S. tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25 percent from 10 percent.

Worries about Europe's economic slowdown and plunging inflation expectations dominated morning trade in debt markets.

The yield on Germany's 10-year Bund, considered the risk-free benchmark for the region, held close to 0.10 percent after touching 0.77 percent on Friday, its lowest since October 2016. The European Commission downgraded its euro zone growth forecasts last week. GVD/EUR

A collapse in talks between U.S. Democrat and Republican lawmakers has meanwhile raised fears of another government shutdown there. talks and shutdown (worries) are really weighing on markets," said Sebastian Fellechner, rates strategist at DZ Bank. "We don't see any major movements because of the general and global uncertainty."

The rising threat to growth means equity markets will focus on earnings from major U.S. companies for clues about the health of consumer shares. These include Coca-Cola (NYSE:KO) Co KO.N , PepsiCo Inc PEP.O , Walmart (NYSE:WMT) Inc WMT.N , Home Depot Inc (NYSE:HD) HD.N , Macy's Inc M.N and Gap Inc (NYSE:GPS) GPS.N .

Analysts now expect first-quarter earnings for S&P 500 companies to decline 0.1 percent from a year earlier. That would be the first such quarterly profit decline since 2016, according to IBES data from Refinitiv.

In Asia, China's blue-chip index .CSI300 surged 1.6 percent. Shanghai's SSE (LON:SSE) Composite .SSEC climbed 1.2 percent.

Australian stocks recouped some losses to end 0.2 percent lower. South Korea's KOSPI index .KS11 was up 0.2 percent. Indonesian and Indian benchmarks were in the red.

That left MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slightly higher after it fell from a four-month high on Friday. Trading volumes were generally light, with Japan closed for a public holiday.

Elsewhere, the euro EUR= was 0.05 percent lower at $1.1317 after five straight days of losses took it to more than two-week lows. Sterling GBP= fell to $1.2895 after the Q4 GDP data was released. GBP/

British Prime Minister Theresa May has rejected the idea of a customs union with the European Union, ending hopes she would shift her Brexit policy to win over the opposition Labour Party, leaving Britain still on course for a disorderly exit. Australian dollar AUD=D3 inched up from Friday's one-month lows, although sentiment was still cautious after the central bank opened the door to a possible rate cut. prices slipped on concern about slowing global demand and a pick-up in U.S. drilling activity. O/R

U.S. crude was 0.8 percent lower at $52.31 per barrel. Brent LCOcv1 was 0.2 percent lower at $61.97.

GLOBAL MARKETS-Stocks inch higher as investors look ahead to trade talks, Brexit
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email