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Stocks Edge Higher; Treasuries Rise, Dollar Drops: Markets Wrap

All you need to know about global markets today.

Stocks Edge Higher; Treasuries Rise, Dollar Drops: Markets Wrap
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

(Bloomberg) -- U.S. stock indexes were mixed and bonds advanced as the risk rally stalled below all-time highs amid mixed economic data and mounting concern over a partial trade deal. The yen gained along with gold.

The S&P 500 eked out its third gain in a row, but continued to trade under records reached over the last week sparked by hopes the U.S. and China would soon hammer out an agreement. That hasn’t happened, and there’s been an abundance of signs that negotiations are stumbling. Both the Nasdaq Composite and the Dow Jones Industrial Average ended the day barely changed.

Tech lead decliners as Cisco Systems Inc. tumbled after earnings fell short of expectations, a signal companies are holding off on purchases amid the trade standoff. Walmart Inc., which had risen earlier after earnings, fell. Boeing Co. continued its torrid week, rising 1.4%.

A mixed bag of U.S. economic data Thursday, rising producer prices and more initial jobless claims than expected, also gave traders few reasons to change bets. The benchmark 10-year Treasury yield fell toward 1.80%, pushing its weekly decline to more than 10 basis points and ending talks of a reflation trade. Oil pared gains after a government report showed American inventories rose.

Stocks Edge Higher; Treasuries Rise, Dollar Drops: Markets Wrap

“We’re in a good place but I think this overhang with the trade talks, everyone was optimistic about the phase-one deal and rightfully so. But we have yet to have that finalized and I think that’s still driving the market,” Paul Brigandi, managing director at Direxion, said by phone. “And you see that when there’s new headlines about the deal hitting a snag or if there’s a tweet about positive development, then we rally. It’s still very much on the market’s mind -- it’s the biggest driver right now, more so than the Fed or any chatter around rates.”

The gloomy figures out of Asia are serving as a reminder of the impact that ongoing trade tensions are having on the global economy. Investors looking for a resolution are still awaiting news of a signing date and location for a U.S.-China phase-one trade deal that’s been on the cards for weeks. President Donald Trump said that talks are moving “very rapidly.”

Elsewhere, European shares slipped as data showed Germany narrowly dodged a recession last quarter. Stocks declined in Hong Kong and Tokyo after a report showing Japan’s economy slowed sharply in the third quarter. Shares rose in Shanghai, Seoul and Sydney.

Stocks Edge Higher; Treasuries Rise, Dollar Drops: Markets Wrap

Here are some key events coming up this week:

  • U.S. retail sales on Friday are forecast to rebound in October after unexpectedly falling the prior month.

These are the main moves in markets:

Stocks

  • The S&P 500 Index rose 0.1% as of 4 p.m. New York time.
  • The Stoxx Europe 600 Index declined 0.3%.
  • The U.K.’s FTSE 100 Index dipped 0.7%.
  • The MSCI Asia Pacific Index sank 0.5%.
  • The MSCI Emerging Market Index fell 0.2%.

Currencies

  • The Bloomberg Dollar Spot Index was little changed.
  • The euro gained 0.1% at 1.1016.
  • The British pound gained 0.3% to 1.2886.
  • The Japanese yen increased 0.4% 108.38.

Bonds

  • The yield on 10-year Treasuries sank seven basis points.
  • Germany’s 10-year yield decreased four basis points.
  • Britain’s 10-year yield declined four basis points.
  • Japan’s 10-year yield fell three basis points.

Commodities

  • West Texas Intermediate crude fell 0.2% to $57.00.
  • Gold gained 0.6% to 1,472.30.

--With assistance from Cormac Mullen, Yakob Peterseil and Claire Ballentine.

To contact the reporters on this story: Randall Jensen in New York at rjensen18@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.net

To contact the editor responsible for this story: Jeremy Herron at jherron8@bloomberg.net

©2019 Bloomberg L.P.