What you need to know before the opening bell: April 17, 2019
Bonds yields rose and stocks were mixed on Wednesday as traders digested positive data on China’s economy while the earnings season rumbled on. The U.S. dollar retreated.
The yield on 10-year Treasuries climbed to a four-week high, while rates on core European debt rose in concert. The euro approached a three-week high ahead of inflation data. The Stoxx Europe 600 Index headed for its first fall in six days, with miners leading the decline as iron ore tumbled. Futures on the S&P 500 edged higher. Japanese shares eked out modest gains, while those in Hong Kong were flat and stocks in Shanghai gained after data showed China’s economic growth, industrial production and retail sales all better-than-expected.
China’s economy held up in the first three months as policy makers boosted stimulus to sustain growth, easing concerns about flagging global output. That should provide comfort for stock bulls and damp demand for bonds. But clouding the issue is doubt about the possibility of additional measures, as the resilience suggests that pro-cyclical policies have already taken effect. Traders are also busy digesting corporate earnings, with Morgan Stanley and BNY Mellon among companies reporting on Wednesday.
Elsewhere, oil climbed after a report showed a surprise drop in crude inventories. The New Zealand dollar retreated after inflation slowed more than forecast, while the Australian dollar rose after the Chinese data.
Here are some notable events coming up:Earnings season rolls on this week, with reports due from: Morgan Stanley, American Express, PepsiCo, Honeywell, Alcoa and Taiwan Semiconductor among others. A swathe of financial markets will close across the Western world for the Good Friday holiday, including in the U.S., U.K. and Germany.
These are the main moves in markets:
STOCKSThe Stoxx Europe 600 Index dipped 0.2 per cent as of 9:24 a.m. London time, the first retreat in more than a week. Futures on the S&P 500 Index rose 0.1 per cent. The MSCI All-Country World Index advanced 0.1 per cent to the highest in more than six months. The U.K.’s FTSE 100 Index declined 0.2 per cent. The MSCI Emerging Market Index jumped 0.3 per cent to the highest in 10 months.
CURRENCIESThe Bloomberg Dollar Spot Index dipped 0.1 per cent. The euro gained 0.3 per cent to US$1.1319, the strongest in almost four weeks. The British pound climbed 0.1 per cent to US$1.3057. The Japanese yen fell less than 0.05 per cent to 112.04 per U.S. dollar.
BONDSThe yield on 10-year Treasuries climbed two basis points to 2.61 per cent, the highest in more than four weeks. Germany’s 10-year yield rose three basis points to 0.09 percent. Britain’s 10-year yield rose three basis points to 1.245 per cent. Japan’s 10-year yield rose two basis points to -0.006 per cent.
COMMODITIESWest Texas Intermediate crude increased 0.7 per cent to US$64.51 a barrel. Gold advanced 0.1 per cent to US$1,278.40 an ounce, the first advance in a week. The Bloomberg Commodity Index climbed 0.4 per cent.