Saturday , August 17 2019

Stocks struggle as earnings roll in; Treasuries decline

Bloomberg

US equity futures drifted with European stocks as a mixed bag of corporate earnings gave traders food for thought amid fresh trade tensions. Treasuries yields edged lower and
European government bonds climbed.
Contracts on the S&P 500, Dow Jones and Nasdaq gave up some their early gains after Bank of America’s net interest income fell short of analysts’ expectations, though CEO Brian Moynihan was upbeat about the economic outlook.
The Stoxx Europe 600 index was little changed, with communications-equipment maker Ericsson among the biggest losers after it posted results that missed estimates for the first time in
six quarters.
Benchmarks in Japan, Korea and China fell, while Australian stocks rose after sentiment overnight was dented by President Donald Trump saying he could impose more tariffs on China. The dollar held near a one-week high, while the euro erased a decline after June inflation data for the common-currency region largely met economists’ expectations. Crude oil rose for the first time in three days.
Investors have plenty to digest this week. More dovish comments from Federal Reserve Chairman Jerome Powell did little to stir markets, suggesting easing may be fully priced in.
A resumption of trade bluster from Trump served to remind that the threat of tariffs hasn’t gone away. Corporate reporting season will add to the mix as traders assess broader economic health, after some of Wall Street’s biggest names sounded upbeat about their prospects.
Elsewhere, Bitcoin extended a slide below $10,000. The pound steadied after falling to a two-year low as traders contemplated no-deal Brexit risk and the Times reported that Boris Johnson, the leading candidate to take over as prime minister, wants to hold an early general election.
Monetary policy decisions are due in Indonesia, South Korea and South Africa on Thursday.
The Stoxx Europe 600 Index gained less than 0.05 percent in New York. Futures on the S&P 500 Index rose 0.1 percent.
The MSCI All-Country World Index decreased 0.1 percent. The UK’s FTSE 100 Index dipped 0.2 percent.
The Bloomberg Dollar Spot Index declined less than 0.05 percent. The euro rose less than 0.05 percent to $1.1214. The British pound increased 0.1 percent to $1.2415. The Japanese yen decreased less than 0.05 percent to 108.27 per dollar.
The yield on 10-year Treasuries fell one basis point to 2.09 percent. Germany’s 10-year yield declined five basis points to -0.29 percent, the lowest in a week. Britain’s 10-year yield declined five basis points to 0.774 percent, the lowest in a week. Japan’s 10-year yield declined less than one basis point to -0.121 percent.
West Texas Intermediate crude rose 1.1 percent to $58.25 a barrel, the largest advance in a week. Gold declined 0.1% to $1,404.39 an ounce. The Bloomberg Commodity Index rose 0.4 percent.

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