The Breakfast Briefing: Global Stocks Extend Climb

Ted

FYI: .U.S. Futures Up

• European, Asian stocks gain

• Bond yields decline and dollar weakens

• Oil rises as Iran tensions flare

Global stocks rose Thursday after Federal Reserve Chairman Jerome Powell hinted at a possible interest-rate cut later this month to support the U.S. economy in the face of slowing global growth.

Indexes across Europe opened higher, with the pan-continental Stoxx Europe 600 gaining 0.3% to reverse a four-session losing streak. The oil-and-gas and basic-resources sectors led the gains, while construction companies lost ground.

Three Iranian vessels tried to block a BP-run tanker from passing through the Strait of Hormuz but were turned away by a British warship, the U.K.’s Defense Ministry said, exacerbating tensions in the region and adding to oil-supply concerns.

Global oil benchmark Brent crude rose 0.4% to $67.27 after surging to a seven-week high on Wednesday.

Reckitt Benckiser Group was among the U.K.’s biggest gainers after the drugmaker agreed to pay $1.4 billion to resolve a U.S. federal investigation into sales and marketing of Suboxone Film, an opioid-addiction treatment.

Meanwhile, Germany’s Deutsche Bank fell 1.4% after The Wall Street Journal reported the U.S. Justice Department is investigating whether the lender breached anticorruption laws in its dealings with Malaysian fund 1MDB.

Asian markets were mostly higher ahead of the closing bell, with Korea’s Kospi and Hong Kong’s Hang Seng leading the gains.

In the U.S., futures on the S&P 500 and the Dow Jones Industrial Average were trading 0.2% higher. Futures don’t necessarily predict moves after the market open.

The yield on 10-year U.S. Treasurys fell to 2.041% from 2.061% on Wednesday. Bond prices and yields move in opposite directions.

The WSJ Dollar Index, which measures the currency against a basket of its peers, dropped 0.2%.
Regards,
Ted

WSJ:
https://www.wsj.com/articles/global-stocks-extend-climb-11562832040

Bloomberg
https://www.bloomberg.com/news/articles/2019-07-10/asian-stocks-set-for-gains-dollar-slips-on-powell-markets-wrap?srnd=premium

IBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-facebook-amazon-apple-microsoft-stock-market-rally-fed-chief-powell/

CNBC:
https://www.cnbc.com/2019/07/11/stock-market-fed-chief-signals-a-rate-cut.html

Reuters:
https://uk.reuters.com/article/uk-usa-fed/powell-testimony-fed-meeting-highlight-case-for-insurance-idUKKCN1U52F4

U.K.
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-rebounds-from-four-day-losing-streak-on-fed-rate-cut-hopes-reckitt-settlement-idUKKCN1U60SF

Europe:
https://www.reuters.com/article/us-europe-stocks/european-shares-break-four-day-losing-streak-on-fed-powells-dovish-remarks-idUSKCN1U60R1

Asia:
https://www.marketwatch.com/story/asian-shares-rise-after-fed-signals-us-rate-cut-likely-2019-07-11/print

Bonds:
https://www.cnbc.com/2019/07/11/us-bonds-yields-tick-lower-after-fed-chair-powells-dovish-testimony.html

Currencies:
https://www.cnbc.com/2019/07/11/forex-markets-dollar-federal-reserve-in-focus.html

Oil:
https://www.cnbc.com/2019/07/11/oil-markets-middle-east-gulf-of-mexico-in-focus.html

Gold:
https://www.cnbc.com/2019/07/11/gold-markets-federal-reserve-in-focus.html

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