Stocks Advance on Tariff Bets; Oil Bull Run Ends: Markets Wrap
Jerome Powell, chairman of the U.S. Federal Reserve, speaks during the Monetary Policy Strategy, Tools, and Communication Practices Conference in Chicago, Illinois, U.S. (Photographer: Taylor Glascock/Bloomberg)

Stocks Advance on Tariff Bets; Oil Bull Run Ends: Markets Wrap

(Bloomberg) --

Stocks climbed on optimism Mexican tariffs will be avoided, while traders assessed mixed economic data. Oil entered a bear market after U.S. supplies jumped the most in almost 30 years.

The S&P 500 Index extended gains into a second day as President Donald Trump said Mexico wants to make a deal and White House trade adviser Peter Navarro told CNN the nation still has time to prevent the tariffs from taking effect. The Treasury two-year yield fell as weak private-jobs data outweighed solid service-industries figures, bolstering bets on rate cuts.

Stocks Advance on Tariff Bets; Oil Bull Run Ends: Markets Wrap

Senate Majority Leader Mitch McConnell told administration officials that President Trump should hold off on imposing tariffs on Mexico until he can personally make his argument to Republicans in Congress, according to people briefed on the conversation. The tariff threat has led several analysts to forecast increased risk of a recession in the world’s largest economy, which could put pressure on the Federal Reserve to cut rates.

Investors are “hoping that the Fed will cut rates and hoping that a resolution to the trade concerns will come to an end sometime soon as the economy slows,” said Ryan Nauman, market strategist at Informa Financial Intelligence.

Here are some notable events coming up:

  • Theresa May steps down on Friday as leader of the Conservative Party.
  • Friday’s U.S. jobs report is projected to show payrolls rose by 180,000 in May, unemployment held at 3.6%, a 49-year low, and average hourly earnings growth sustained a 3.2% pace.

These are some of the main moves in markets:

Stocks

  • The S&P 500 gained 0.8% to 2,826.15 as of 4 p.m. New York time.
  • The Stoxx Europe 600 Index increased 0.4%.
  • The MSCI Asia Pacific Index jumped 1%.

Currencies

  • The Bloomberg Dollar Spot Index climbed 0.3%.
  • The euro fell 0.3% to $1.1221.
  • The Japanese yen dipped 0.3% to 108.46 per dollar.

Bonds

  • The yield on two-year Treasuries slid three basis points to 1.86%.
  • Germany’s 10-year yield declined two basis points to -0.23%.
  • Britain’s 10-year yield fell four basis points to 0.863%.

Commodities

  • The Bloomberg Commodity Index dipped 1.6%.
  • West Texas Intermediate crude sank 3.4% to $51.68 a barrel.

©2019 Bloomberg L.P.

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