Asian Stocks to Gain on Trade Deal; Dollar Falls: Markets Wrap

Asian stocks look set to gain after U.S. President Donald Trump reached an agreement with European Commission President Jean-Claude Juncker aimed at averting a transatlantic trade war. The dollar fell alongside Treasuries.

The S&P 500 Index rose to within 1 percent of a fresh record high after word of a deal was first reported shortly before U.S. equity markets closed. The two sidesagreed to expand European imports of U.S. liquefied natural gas and soybeans and lower industrial tariffs on both sides, Trump said. The yield on 10-year Treasuries climbed toward 3 percent.

Trump’s meeting with Juncker came amid a raft of earnings from U.S. companies, some of which reflected the impact of recent trade threats from the White House. Facebook tumbled 18 percent in after-hours trading as revenue and user growth missed estimates and General Motors shares plunged after the carmaker cut its profit forecast on surging metals prices.

Elsewhere, Turkey’s lira regained some of the previous session’s losses, sustained after the central bank unexpectedly kept rates unchanged. Gauges of emerging-market currencies and shares climbed. West Texas crude ticked up on stockpiledecreases, and gold gained.

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Here are some key events coming up this week:

  • Earnings season continues with the following tech companies among those reporting: Amazon.com, Twitter, Advanced Micro Devices, Qualcomm and Intel. Others include Nissan and Shell.
  • The European Central Bank’s policy decision is Thursday.
  • U.S. gross domestic product probably increased by about 4.2 percent at an annualized rate in the second quarter, the most since 2014, economists forecast ahead of Friday’s data.

Terminal users can follow our Markets Live blog here.

These are the main moves in markets:

Stocks

  • Futures on Japan’s Nikkei 225 rose 0.2 percent in Singapore.
  • Futures on Australia’s S&P/ASX 200 Index advanced 0.1 percent.
  • Futures on Hong Kong’s Hang Seng Index gained 0.3 percent.
  • The S&P 500 Index gained 0.9 percent.

Currencies

  • The Bloomberg Dollar Spot Index sank 0.5 percent to the lowest in almost seven weeks.
  • The euro bought $1.1728 after advancing 0.4 percent.
  • The offshore yuan was steady at 6.7642 per dollar.
  • The yen held at 111.02 per dollar, near the strongest in over two weeks.

Bonds

  • The yield on 10-year Treasuries increased two basis points to 2.97 percent.

Commodities

  • The Bloomberg Commodity Index increased 1 percent to its highest in over two weeks.
  • West Texas Intermediate crude rose 1.1 percent to $69.30 a barrel.

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