FYI: European stocks shrugged off a weak session in Asia to post gains on Thursday, while the U.S. and Mexico were set to enter a second day of negotiations that could avert tariffs being imposed on the Central American country.
The Stoxx Europe 600 gained 0.5% in opening trade. Germany’s DAX ticked up 0.4% while the U.K. FTSE 100 climbed 0.6%.
The collapse of merger talks between Renault and Fiat Chrysler hit shares of both companies. Renault shares and Fiat shares were down by 6.4% and 3.4% respectively. Shares in Nissan, Renault’s existing partner, were down 1.7% in Japan.
Fears about the impact of President Trump’s various standoffs with the U.S.’s leading trade partners on the health of the global economy have hurt stock markets in recent weeks. But U.S. indexes extended a rebound on Wednesday, with the S&P 500 rising 0.8%, that came after the Federal Reserve signaled it could cut rates to boost economic growth and the central bank’s “beige book” reported modest growth in April and May.
That momentum didn’t carry over into Asian markets Thursday. Shares in Shanghai were down 1%, while those in Hong Kong and Tokyo were flat.
U.S. futures pointed to opening gains on Wall Street on Thursday of 0.3% for both the Dow Jones Industrial Average and the S&P 500.
As stock markets have been hit by growth fears, government bond prices have rallied and yields declined. That continued Thursday with the U.S. 10-year Treasury yield falling further to 2.110% from 2.119%, while the German bund was also more deeply negative at minus 0.230% despite data showing growth in industrial orders in April in the country.
Italian yields also fell despite the decision by European authorities to declare that the country is in breach of its debt reduction agreements, which could heighten political tensions between the country and the bloc. Italian 10-year yields were down to 2.443% from 2.489%.
Oil prices bounced after falling into a bear market in the U.S. on Wednesday. Global benchmark Brent crude price gained 0.4% to $60.84. Gold also rose, by 0.2% to $1,336.50 per ounce.
Regards
Ted
WSJ:
https://www.wsj.com/articles/europe-stocks-wall-street-futures-inch-up-11559808096Bloomberg:
https://www.bloomberg.com/news/articles/2019-06-05/asia-stocks-to-start-mixed-u-s-futures-slip-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-mexico-tariffs-stock-market-rally-stitch-fix-stock-cloudera-stock-mongodb-stock/CNBC:
https://www.cnbc.com/2019/06/06/stock-market-wall-streets-rally-is-set-to-slow.htmlReuters:
https://uk.reuters.com/article/uk-global-markets/shares-subdued-as-trade-risk-sours-rate-hopes-idUKKCN1T7024U.K.
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-up-as-stimulus-hopes-counter-growth-worries-idUKKCN1T70PUEurope:
https://www.reuters.com/article/us-europe-stocks/european-shares-rise-on-hopes-of-ecb-action-idUSKCN1T70RPAsia:
https://www.marketwatch.com/story/asian-markets-mixed-as-traders-weigh-trade-tensions-vs-hopes-of-fed-rate-cut-2019-06-05/printBonds:
https://www.cnbc.com/2019/06/06/treasury-yields-edge-lower-as-wall-street-rally-fades.htmlCurrencies:
https://www.cnbc.com/2019/06/06/forex-market-us-mexico-tensions-ecb-policy-decision-in-focus.htmlOil:
https://www.cnbc.com/2019/06/06/oil-market-us-crude-stockpiles-opec-supply-cuts-in-focus.htmlGold:
https://www.cnbc.com/2019/06/06/gold-market-dollar-moves-us-mexico-tensions-in-focus.htmlCuirrent Futures:
https://finviz.com/futures.ashx
