Stocks End Flat as Treasuries, Dollar Advance: Markets Wrap

(Bloomberg) -- U.S. stocks ended slightly lower in thin trading amid American data that was largely in line with estimates and more assurance that Federal Reserve officials stand ready to act if needed. Treasuries rose.

The S&P 500 fell less than a point, notching a second straight drop even after getting a boost from IHS Markit data that signaled the U.S. economy remains the global leader. Volume was 28% below the 30-day average. Data from Germany and France fell far short of estimates, sending stocks in the region down 0.8%. U.S. futures had been higher overnight on signs of easing trade tensions. American money-market interest rates held steady.

The U.S. data bolstered confidence that the recession signals emanating from the bond market are overdone, while the gloomy data from the heart of the euro area was a stark reminder to investors of the fragility of the global economy. While markets remain on edge ahead of next month’s planned high-level trade talks between the U.S. and China, they’re also fixated on any action or messaging from the world’s major central banks that could support growth.

“Global growth is slowing but U.S. economic growth is still chugging along,” Ryan Nauman, market strategist at Informa Financial Intelligence, said by phone. “It’s promising news, promising data, but it’s not an all clear quite yet.”

With Tokyo shut for a holiday stocks in Asia were mixed, eventually edging lower overall as Shanghai shares dropped. Equities in India continued a surge. The onshore yuan fell amid caution in the run-up to next week’s national holidays, and the Korean won sank as exports continued to deteriorate.

These are some key events coming up this week:

• San Francisco Fed President Mary Daly delivers remarks in Salem, Oregon.
• Decisions are due Wednesday from central banks in New Zealand and Thailand. Thursday brings a monetary policy decision in the Philippines.
• Core PCE -- the Fed’s preferred inflation measure -- is forecast for 1.8%, the strongest reading since January. That’s due Friday.

Here are the main moves in markets:

Stocks

• The S&P 500 Index fell 0.01% as of 4 p.m. New York time.
• The Dow Jones Industrial Average added 0.1%.
• The Stoxx Europe 600 Index sank 0.8%.
• The Shanghai Composite Index fell 1%.
• The MSCI Emerging Market Index dipped 0.6%.

Currencies

• The Bloomberg Dollar Spot Index gained 0.1%.
• The euro declined 0.2% to $1.0998.
• The British pound declined 0.3% to $1.2435.
• The onshore yuan dipped 0.5% to 7.125 per dollar.
• The Japanese yen rose 0.1% to 107.44 per dollar.

Bonds

• The yield on 10-year Treasuries declined one basis point to 1.71%.
• The yield on two-year Treasuries fell one basis point to 1.67%.
• Germany’s 10-year yield decreased six basis points to -0.59%.
• Japan’s 10-year yield was unchanged at -0.207%.

Commodities

• West Texas Intermediate crude added 0.7% to $58.48 a barrel.
• Gold futures climbed 1% to $1,530.80 an ounce.

--With assistance from Justina Vasquez, Samuel Potter and Vildana Hajric.

To contact the reporters on this story: Jeremy Herron in New York at jherron8@bloomberg.net;Sarah Ponczek in New York at sponczek2@bloomberg.net

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

©2019 Bloomberg L.P.