(Bloomberg) -- Stocks in Asia are poised to gain after U.S. equities advanced as positive signs emerged on trade talks and ahead of earnings from some of the world’s biggest companies. Treasuries fell.
Futures pointed to shares rising at the open in Australia and Hong Kong. Trading may remain muted with Japan closed for a holiday. The S&P 500 Index climbed to a one-month high, surpassing 3,000. Apple Inc. rallied to a record. The British pound dropped after Prime Minister Boris Johnson was thwarted in his latest attempt to get a Brexit deal approved.
U.S. President Donald Trump said China indicated that negotiations over an initial deal are advancing, raising expectations the nations’ leaders could sign an agreement at a meeting next month in Chile.
Focus will turn to earnings after analysts cut estimates for combined S&P 500 profits. Investors will get numerous chances to see how corporations are coping with the effects of trade tension, slowing growth and Brexit. Industry heavyweights McDonald’s Corp., Caterpillar Inc. and Amazon.com Inc. are all scheduled to deliver earnings this week.
Here are some key events coming up this week:
- Earnings season is in full swing with companies reporting including: Amazon.com, Microsoft, Daimler, Kia Motors, McDonald’s, Procter & Gamble, Caterpillar and UBS.
- Thursday brings monetary policy decisions from the European Central Bank and Bank Indonesia.
- U.S. factory orders for business equipment will provide a look into the strength of capital investment in September. The figures will show to what extent the latest tranche of tariffs on China and others is impacting investment decisions.
These are the main moves in markets:
Stocks
- Futures on Australia’s S&P/ASX 200 Index rose 0.3%.
- Futures on Hong Kong’s Hang Seng Index rose 0.2%.
- The S&P 500 climbed 0.7%.
Currencies
- The yen was steady at 108.62 per dollar after falling 0.2%.
- The offshore yuan traded at 7.0698 per dollar.
- The euro was at $1.1149.
- The British pound was steady at $1.2966 after sliding 0.2%.
Bonds
- The yield on 10-year Treasuries jumped five basis points to 1.80%.
Commodities
- West Texas Intermediate crude fell 0.6% to $53.46 a barrel.
- Gold was at $1,484.56 an ounce after dropping 0.4%.
--With assistance from Rita Nazareth, Vildana Hajric and Claire Ballentine.
To contact the reporter on this story: Andreea Papuc in Sydney at apapuc1@bloomberg.net
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Garfield Reynolds
©2019 Bloomberg L.P.
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