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The Breakfast Briefing: Global Stocks Give Back Some Early-Week Gains
FYI: Global stocks slipped Tuesday, relinquishing some of Monday’s gains as investors awaited further news on trade talks between the U.S. and China.
The Stoxx Europe 600 fell 0.4% in the opening minutes of trading, weighed down by weakness in its trade-exposed constituents. The autos and parts sector fell 0.8% to reverse its early week gains.
The U.K.’s FTSE 100 index underperformed its counterparts, falling 1% as the British pound rose 0.3% against both the dollar and the euro. That came after the U.K.’s leading opposition party signaled its support for a second referendum on the country’s planned departure from the European Union.
“We expect the pound to continue to trade on a stronger footing in the near-term driven by building Brexit optimism that a ‘No Deal’ Brexit will be avoided,” MUFG currency analyst Lee Hardman said in a note.
Gentle selling in Europe followed similar trading in Asia, where the Shanghai Composite Index and Hong Kong’s Hang Seng benchmark fell 0.7%. While Asian stocks moved lower, many regional bourses remained higher for the week so far after President Trump reiterated Monday that he would defer raising import tariffs on Chinese goods.
Futures put U.S. stocks on course to decline at the open as well. The S&P 500 and the Dow Jones Industrial Average were set for losses of 0.3%. U.S. investors were watching out for corporate earnings releases from Home Depot and Macy’s before the opening bell, as well as a handful of economic indicators including one on consumer confidence. Regards, Ted
