FYI: European stocks posted modest gains on Tuesday, shaking off a downbeat session in Asia that came amid concerns about global growth and followed a selloff in U.S. tech shares.
In Europe, the Stoxx Europe 600 was up 0.2% in midmorning trade, recovering from early losses. Germany’s DAX index gained 0.9% and the U.K.’s FTSE 100 rose 0.2%.
Auto makers and their suppliers were the region’s best performers. Volkswagen gained 2.3% after providing further details on the planned listing of its truck unit, while positive U.S. sales figures provided some cause for optimism, despite a generally bearish outlook for the sector, Evercore ISI analyst Arndt Ellinghorst said in a note to clients.
The technology subindex was the worst performing sector on the Stoxx 600, trading down 1.6%. French videogame developer Ubisoft Entertainment SA fell more than 6% after its founders unloaded around €14.4 million ($16.1 million) in shares.
London-listed Hargreaves Lansdown PLC was the biggest loser on the FTSE 100, shedding more than 5% in early trade. The investment manager had directed a number of clients to the Woodford Equity Income fund, which on Monday said it had suspended redemptions.
In Asia, Hong Kong’s Hang Seng Index was down 0.5%, China’s Shanghai Stock Exchange fell 1% and Korea’s Kospi broadly flat.
Australia’s S&P ASX 200 was one of the few local indexes to buck the trend, trading 0.2% higher after the Reserve Bank of Australia cut interest rates in an effort to offset the negative effects of trade tensions. The Australian dollar gained 0.2% against the U.S. dollar.
Government bond yields rose slightly, though they remained under pressure as money managers continued to pursue haven assets and switch out of equities. The yield on 10-year U.S. Treasurys was up to 2.111% on Tuesday, from 2.085% on Monday. The yield on 10-year German bunds was minus 0.208%.
U.S. futures pointed to opening gains of around 0.4% for the S&P 500 and 0.5% for the Dow Jones Industrial Average and the Nasdaq-100, clawing back some of Monday’s losses.
Later on, markets will be focusing on a speech by Federal Reserve Chairman Jerome Powell, as expectations of a rate cut continue to increase. On Monday, the Federal Reserve Bank of St. Louis President James Bullard said that a lowering of the central bank’s short-term rate target “may be warranted soon” if the economic slowdown in the U.S. proves sharper than expected.
Elsewhere, Mexico warned that it was considering retaliating against President Trump’s threat to impose tariffs on exports to the U.S., though it would rather negotiate a solution.
The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was flat.
In commodities, global oil benchmark Brent crude fell 0.1% to $61.23 a barrel, while gold gained 0.1%.
Regards
Ted
MarketWatch:
WSJ:
https://www.wsj.com/articles/global-stocks-slide-after-u-s-tech-selloff-11559634893Bloomberg:
https://www.bloomberg.com/news/articles/2019-06-03/asia-stocks-look-to-steady-as-bonds-extend-gains-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-facebook-stock-market-correction-google-stock-amazon-stock-apple-stock/CNBC:
https://www.cnbc.com/2019/06/04/stock-market-wall-street-monitors-trade-and-growth-concerns.htmlReuters:
https://www.reuters.com/article/us-global-markets/tech-problems-keep-stocks-soft-bonds-stay-strong-idUSKCN1T5066U.K.
https://www.marketwatch.com/story/london-markets-rise-as-weak-data-points-to-central-bank-action-2019-06-04/printEurope:
https://www.marketwatch.com/story/european-markets-rise-as-investors-put-hopes-in-central-banks-2019-06-04/printAsia:
https://www.marketwatch.com/story/asian-markets-mostly-fall-as-investors-mull-trade-war-potential-rate-cut-by-fed-2019-06-03/printBonds:
https://www.cnbc.com/2019/06/04/us-bonds-treasurys-tick-higher-as-investors-await-economic-data.htmlCurrencies:
https://www.cnbc.com/2019/06/04/forex-market-fed-rate-cut-expectations-us-trade-tensions-in-focus.htmlOil:
https://www.cnbc.com/2019/06/04/oil-market-opec-supply-cuts-global-economic-slowdown-in-focus.htmlGold:
https://www.cnbc.com/2019/06/04/gold-market-us-china-trade-tensions-global-economy-fears-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx 
