(Bloomberg) — U.S. stock futures slipped with European shares on Friday, while Asian equities rose at the end of a week when sentiment was mostly bolstered by a dovish tone from the Federal Reserve and hopes for a breakthrough on trade. The dollar fell and Treasuries advanced.
Contracts on the S&P, Dow and Nasdaq indexes pointed to a softer open in New York, while the Stoxx Europe 600 Index handed back an earlier gain. In Asia, shares rose in Shanghai, Tokyo, Seoul and Hong Kong. The greenback was set for a fourth week of losses after Fed Chairman Jerome Powell underscored the message of patience with further interest-rate hikes, while saying the central bank will keep shrinking its balance sheet. European debt tracked Treasuries higher. The pound advanced even as Prime Minister Theresa May’s office countered reports that Brexit may be delayed.
Equities are still set for big gains this week amid signs of progress between the world’s two biggest economies on trade and dovish commentary from the Fed. Nevertheless, worries remain about economic growth and earnings prospects, while there’s also uncertainty as the U.S. partial government shutdown threatens to extend into a fourth week.
Chinese Vice Premier Liu He is set to visit Washington on Jan. 30 and 31 for further trade talks. China’s yuan, which slumped last year as trade tensions worsened, is heading for its best week since 2005 — back when the country dropped a fixed peg to the dollar.
Elsewhere, oil in New York advanced toward $53 a barrel after surging this week. Emerging-market shares climbed.
These are the main moves in markets:
Futures on the S&P 500 Index declined 0.1 percent as of 7:34 a.m. New York time, the first retreat in more than a week.The Stoxx Europe 600 Index decreased 0.1 percent.The MSCI All-Country World Index increased 0.1 percent, hitting the highest in more than four weeks with its sixth consecutive advance.The MSCI Emerging Market Index advanced 0.4 percent to the highest in more than five weeks.
The Bloomberg Dollar Spot Index sank 0.4 percent to the lowest in more than 15 weeks.The euro gained 0.3 percent to $1.1535.The Japanese yen climbed 0.1 percent to 108.29 per dollar.The British pound advanced 0.6 percent to $1.2822, the strongest in more than six weeks on the biggest gain in a week.The MSCI Emerging Markets Currency Index increased 0.2 percent to the highest in almost seven months.
The yield on 10-year Treasuries fell three basis points to 2.71 percent, the biggest drop in more than a week.Germany’s 10-year yield decreased one basis point to 0.25 percent.Britain’s 10-year yield increased two basis points to 1.293 percent, the highest in more than two weeks.The spread of Italy’s 10-year bonds over Germany’s fell four basis points to 2.5977 percentage points to the narrowest in more than a week.
The Bloomberg Commodity Index jumped 0.6 percent to the highest in more than three weeks.West Texas Intermediate crude gained 0.5 percent to $52.87 a barrel, hitting the highest in more than five weeks with its 10th consecutive advance.LME copper climbed 0.3 percent to $5,950.50 per metric ton.Gold increased 0.5 percent to $1,293.36 an ounce.
–With assistance from Adam Haigh and Tian Chen.
To contact the reporter on this story: Eddie van der Walt in London at firstname.lastname@example.org
To contact the editors responsible for this story: Samuel Potter at email@example.com;Christopher Anstey at firstname.lastname@example.org
For more articles like this, please visit us at bloomberg.com
©2019 Bloomberg L.P.