The Breakfast Briefing: Global Stocks Slip As Trade Skirmish Drags On

Ted

FYI: Global stocks were mostly lower on Monday, as investors continued to weigh the impact of souring U.S.-China trade negotiations.

In Europe, the Stoxx Europe 600 was down 0.6% in midmorning trading. In Asia, the Shanghai Stock Exchange dropped 0.4% and Hong Kong’s Hang Seng Index dropped 0.6%. Japan’s Nikkei gained 0.2%.

Futures pointed to opening losses on Wall Street of 0.2% for both the Dow Jones Industrial Average and the S&P 500.

The transportation and technology services sectors dragged European markets lower on Monday. Shares in Deutsche Bank were down 1.7% in morning trading after analysts at UBS recommended investors sell the stock, setting a price target of €5.70, compared with a price of €6.73 on Monday. Meanwhile, Ryanair dropped 3.7% after the Dublin-based carrier posted disappointing earnings.

The 10-year U.S. Treasury yield on Monday ticked up to 2.403%, from 2.396% on Friday. Yields move inversely to prices. German 10-year government bonds were in negative territory at -0.090%.

The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was down 0.2%.

Meanwhile, India’s benchmark Sensex equities index was up 3.6% and the rupee gained 1.1% on the dollar after exit polls released on Sunday showed Prime Minister Narendra Modi is likely to return for another five years at the helm of the world’s second most populous nation.

In Australia, the benchmark ASX 200 index gained 1.7% after a surprise win for the conservative government. The Australian dollar was up 0.9% on the U.S. dollar.

This week, investors will be watching for data on U.S. home sales and eurozone purchasing managers surveys on Thursday.

In commodities, global benchmark Brent crude oil was up 0.4% at $72.53 a barrel.
Regards,
Ted
MarketWatch:
https://www.marketwatch.com/story/stocks-poised-to-start-the-week-lower-as-trade-tensions-persist-2019-05-20/print

WSJ:
https://www.wsj.com/articles/global-stocks-slip-as-trade-skirmish-drags-on-11558338168

Bloomberg:
https://www.bloomberg.com/news/articles/2019-05-19/stocks-set-to-open-mixed-in-asia-aussie-jumps-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-stock-market-rally-china-trade-news/

Reuters:
https://uk.reuters.com/article/uk-global-markets/european-shares-hobbled-as-worries-about-huawei-fallout-mount-idUKKCN1SQ02M

CNBC:
https://www.cnbc.com/2019/05/20/stock-market-wall-street-in-focus-as-global-trade-fears-ease.html

U.K.:
https://uk.reuters.com/article/uk-britain-stocks/oil-majors-keep-ftse-100-afloat-turbulence-hits-ryanair-idUKKCN1SQ0N8

Europe:
https://www.reuters.com/article/us-europe-stocks/chipmakers-weigh-on-european-markets-as-huawei-fallout-spreads-idUSKCN1SQ0NU

Asia:
https://www.marketwatch.com/story/china-markets-retreat-on-rising-trade-tensions-with-us-2019-05-19/print

Bonds:
https://www.cnbc.com/2019/05/20/us-bonds-treasury-yields-tick-higher-ahead-of-fed-speeches-auctions.html

Currencies:
https://www.cnbc.com/2019/05/20/forex-markets-australian-dollar-japanese-yen-in-focus.html

Oil:
https://www.cnbc.com/2019/05/20/oil-markets-opec-in-focus.html

Gold:
https://www.cnbc.com/2019/05/20/gold-near-two-week-low-as-dollar-eclipses-safe-haven-appeal.html

Cuirrent Futures:
https://finviz.com/futures.ashx