U.S. Stocks Slide Amid Conflicting Signs on Trade: Markets Wrap

(Bloomberg) -- U.S. equities slid following losses in Europe and Asia as traders weighed conflicting signals about the outlook for a trade deal between Beijing and Washington.

The S&P 500 Index fell for a third day, the longest losing streak in almost two months, but remained within 1% of a record high. The dollar held steady and Treasuries dipped as China’s chief trade negotiator reportedly said he was “cautiously optimistic” about reaching a phase-one accord. Pessimists focused on speculation Donald Trump may sign legislation backing Hong Kong protesters, setting up further conflict between the nations. TD Ameritrade soared on reports that Charles Schwab Corp. is in talks to buy the brokerage.

Hong Kong’s deteriorating situation may prove crucial to the trade talks, and on Thursday a commentary from China’s state-run news agency accused the U.S. of applying a double standard. China has threatened to retaliate for the passage of the American bill and said supporting the protesters was a “gross” interference in Hong Kong affairs. Traders will be watching for signs of progress ahead of a Dec. 15 deadline for further tariffs.

“Investors now are starting to worry again that we may not see that phase one in 2019,” said Chris Gaffney, president of world markets at TIAA. “It’s going to be tough to have the next leg up without a trade deal.”

Elsewhere, oil futures rose. European bonds tracked Treasuries lower and emerging-market stocks slid.

Here are some key events coming up this week:

• Economic indicators due for release include U.S. and European PMI data for November on Friday.

These are the main moves in markets:

Stocks

• The S&P 500 Index fell 0.2% at the close of trading in New York time.
• The Stoxx Europe 600 Index dipped 0.4%.
• The MSCI Asia Pacific Index declined 0.7%.
• The MSCI Emerging Market Index fell 0.7%.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• The euro slipped 0.1% to $1.1057.
• The British pound slid 0.1% to $1.2906.
• The Japanese yen was little changed at 108.63 per dollar.

Bonds

• The yield on 10-year Treasuries increased two basis points to 1.77%.
• Germany’s 10-year yield increased two basis points to -0.33%.
• Britain’s 10-year yield jumped two basis points to 0.75%.

Commodities

• West Texas Intermediate crude gained 2.3% to $58.42 a barrel.
• Gold decreased 0.5% to $1,464.50 an ounce.

--With assistance from Kyoungwha Kim, Andreea Papuc, Adam Haigh, Cormac Mullen, Yakob Peterseil and Todd White.

To contact the reporter on this story: Vildana Hajric in New York at vhajric1@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Brendan Walsh

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