Monday , February 24 2020

Europe stocks pare decline with US futures; oil climbs

Bloomberg

European stocks and US equity futures trimmed most of an earlier decline on Monday as investors awaited a fresh batch of corporate earnings and some key central bank meetings this week. Crude oil rose following supply disruptions in Libya and Iraq.
Activity was muted across most major markets because of a US holiday. The Stoxx Europe 600 Index traded little changed after spending most of the morning in the red, as gains in automakers offset declines in retailers. Contracts on the main American equity benchmarks also pared their earlier losses. Equities advanced in most of Asia, though shares in Hong Kong and India slumped. European bonds were mixed and range-bound, while the pound slipped ahead of UK jobs data due this week.
Brent crude jumped back above $65 a barrel as unrest hit key production regions.
Iraq temporarily stopped output at an oil field on January 19, while Libyan production almost ground to a halt after armed forces shut down a pipeline.
Jitters in the oil market have helped rein in optimism after recent bullishness, spurred by the signing of the initial Sino-American trade deal and economic indicators from China and the US that provided signs the global outlook is improving. Investors now turn their attention back to corporate earnings after solid results from the biggest banks on Wall Street. Key central bank meetings in Europe and Japan are also on the agenda.
“We are entering 2020 on a more stable footing with economies globally stabilising and looking like they’re turning up, and the phase one trade deal,” Anne Anderson, head of fixed income for Australia at UBS Asset Management, told Bloomberg TV in Sydney. “So it’s a bit more positive with regard to the economic fundamentals.”
Companies including Netflix, IBM, UBS, Procter & Gamble and Hyundai will post results.
Policy decisions are due from central banks including Japan, Canada, Indonesia and the European Central Bank.
The World Economic Forum, the annual gathering of global leaders in politics, business and culture, opens in Davos, Switzerland.
Futures on the S&P 500 Index dipped 0.1% in London. The Stoxx Europe 600 Index was little changed. The MSCI Asia Pacific Index was little changed. The MSCI Emerging Market Index dipped 0.1%.
The Bloomberg Dollar Spot Index climbed 0.1%. The euro was little changed at $1.1087. The British pound sank 0.2% to $1.2994. The onshore yuan dipped 0.1% to 6.866 per dollar. The Japanese yen was little changed at 110.19 per dollar.
Germany’s 10-year yield gained less than one basis point to -0.21%. Britain’s 10-year yield climbed two basis points to 0.647%. Japan’s 10-year yield advanced one basis point to 0.01%.
West Texas Intermediate crude climbed 0.5% to $58.86 a barrel. Iron ore fell 0.3% to $94.30 per metric ton.
Gold gained 0.2% to $1,560.01 an ounce.

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