Stocks pared earlier gains as shares of Apple and Asia-based suppliers slumped after
President Donald Trump insisted his trade war with China will spur more manufacturing jobs in the US.
The S&P 500 opened higher, breaking a four-day slide, before pulling back from the day’s highs. The Stoxx Europe 600 Index fluctuated in early trading before finding its feet as Italy’s benchmark surged, buoyed by official government comments over the weekend that the country’s impending budget will be pragmatic and within EU fiscal rules. Emerging-market shares slid. Equities sank in Shanghai and Hong Kong, with the latter’s benchmark nearing a bear market in the wake of Trump’s weekend threat to step up his trade showdown with China.
“We’ve had so much data come through that we now get into a little bit of a lull,” Mark Hackett, chief of investment research at Nationwide Funds Group, said in an interview at Bloomberg’s New York headquarters. “So unfortunately the only thing that is left is trade, and we’re going to probably get more negative headlines on that than positive.”
The pound jumped after European Union chief Brexit negotiator Michel Barnier said a deal with the UK is “realistic” and “possible” within eight weeks. Worries from the trade ructions to emerging-market turmoil continue to mar the outlook for global equities, with the infection even spreading to US stocks in last week’s holiday-shortened trading. Trump’s signal that he’s ready to target a sum of goods equal to virtually all imports from China came as data showed a healthy American labour market with signs of wage inflation that could clear the way for two more Federal Reserve interest rate hikes this year.
Policy decisions from the Bank of England and the European Central Bank on Thursday. Russian President Vladimir Putin and Japanese Prime Minister Shinzo Abe will meet. Apple unveils its latest iPhones on Wednesday. Australia employment is due on Thursday. China releases August industrial production, retail sales data on Friday. US retail sales, industrial production, consumer sentiment on Friday.
The S&P 500 Index climbed 0.3 percent in New York, while the Dow Jones Industrial Average gained 0.2 percent and the Nasdaq Composite Index was little changed.
The Stoxx Europe 600 Index climbed 0.5 percent, the largest increase in two weeks. The UK’s FTSE 100 Index fell 0.1 percent. Germany’s DAX Index climbed 0.2 percent. The MSCI Emerging Market Index sank 1.1 percent to the lowest in 14 months. The MSCI Asia Pacific Index declined 0.6 percent, reaching the lowest in about 13 months on its eighth consecutive decline.
The Bloomberg Dollar Spot Index fell 0.2 percent. The euro gained 0.5 percent to $1.1584. The British pound increased 0.8 percent to $1.3028. The Japanese yen decreased 0.1 percent to 111.10 per dollar.
The yield on 10-year Treasuries fell less than one basis point to 2.94 percent.
Germany’s 10-year yield increased two basis points to 0.40 percent, the highest in more than a week. Britain’s 10-year yield rose one basis point to 1.47 percent. Italy’s 10-year yield declined 10 basis points to 2.93 percent.