BNN Bloomberg's closing bell update: Nov. 8, 2019
U.S. equities finished a week of dueling tariff headlines on a high note, as investors tried to anticipate the next moves in the trade war with China. Ten-year Treasury yields gained, while the dollar rose and West Texas crude held above US$57 a barrel.
The S&P 500 Index ticked up to a new closing high Friday, surpassing a record set the previous session and registering its fifth consecutive weekly gain, sparked by optimism that global growth troubles are dissipating. Tech shares and health-care stocks led advancers, while energy and utilities slid. The Dow Jones Industrial Average ended the session little changed, while the Nasdaq Composite also reached a record.
Investors have been whipsawed the past two days amid an onslaught of contradictory headlines about progress toward an interim deal in the U.S.-China trade war. Officials from the two countries both said Thursday that a phase-one agreement would feature pledges to roll back tariffs on each others’ goods in phases, but President Donald Trump said Friday that the U.S. hasn’t agreed to a rollback, dimming hopes for a preliminary trade deal anytime soon.
“Investors figure that, by and large, something will get done. Investors think that some trade deal is going to come over the coming months, very possibly by year’s end,” said Rick Bensignor, the founder of Bensignor Group and a former strategist for Morgan Stanley. “It’s a positive step towards doing something that shows two countries can come together and get some stuff done.”
Insurance and financial companies weighed on the Stoxx Europe 600 Index, but the gauge still scored a weekly gain as well. China’s exports declined less than expected in October as optimism rose about an interim trade deal, though imports contracted for a sixth straight month. The offshore yuan edged lower though stayed stronger than 7 per dollar.
Elsewhere, an early rally for Asian stocks fizzled, leaving most shares down in the region. Hong Kong equities were among the worst performing after the death of student protester threatened to inflame demonstrations planned for this weekend. Japanese 10-year government bond yields climbed alongside their Australian peers.
Here are the main moves in markets:
The S&P 500 Index gained 0.3 per cent to 3,093.06 as of 4:05 p.m. New York time, the highest on record.
The Stoxx Europe 600 Index fell 0.3 per cent to 405.42, the first retreat in more than a week and the biggest fall in a week.
Germany’s DAX Index decreased 0.5 per cent to 13,228.56, the first retreat in more than a week and the largest dip in a month.
The MSCI Emerging Market Index sank 0.9 per cent to 1,063.60, the biggest dip in more than two months.
The Bloomberg Dollar Spot Index advanced 0.2 per cent to 1,204.32, hitting the highest in more than three weeks with its fifth straight advance.
The euro dipped 0.3 per cent to US$1.1021, reaching the weakest in four weeks on its fifth consecutive decline.
The British pound sank 0.3 per cent to US$1.2783, hitting the weakest in more than three weeks with its fifth consecutive decline.
The Japanese yen strengthened 0.1 per cent to 109.21 per dollar.
The offshore yuan weakened 0.2 per cent to 6.9871 per dollar, the largest decrease in more than three weeks.
The yield on 10-year Treasuries increased two basis points to 1.94 per cent, the highest in 14 weeks.
The yield on two-year Treasuries advanced one basis point to 1.67 per cent, the highest in six weeks.
Germany’s 10-year yield declined three basis points to -0.26 per cent, the biggest fall in a week.
Britain’s 10-year yield declined less than one basis point to 0.789 per cent.
West Texas Intermediate crude advanced 0.5 per cent to US$57.44 a barrel, the highest in more than six weeks.
Gold depreciated 0.7 per cent to US$1,458.33 an ounce, the weakest in almost 14 weeks.