Asia Stocks Set for Muted Start; Treasuries Steady: Markets Wrap

Marco Green
November 8, 2018

-China trade deal ebbed in recent days. Shares in Asia slid following Friday's rally and after White House economic adviser Larry Kudlow downplayed the potential for a quick deal between the US and China. The euro recovered from disappointing manufacturing data to gain, while the pound strengthened despite no apparent progress on Brexit negotiations.

S&P 500 Index futures lost 0.2 per cent. Automakers and financial services companies were among the biggest decliners in the Stoxx Europe 600 Index, with futures on the Dow, Nasdaq and S&P 500 falling alongside those in Asia after White House economic adviser Larry Kudlow downplayed the potential for a quick deal with China.

Politics, geopolitics and central banks will all be in focus in a busy week for investors. The US election, which is being seen as a popular vote on President Trump's policies, will take place on Tuesday this week.

Later this week on Thursday, the Federal Reserve policy meeting is scheduled to take place, wherein officials are not expected to change the benchmark interest rate, but are expected to give hints about what to look forward to in 2019.

The Bloomberg Dollar Spot Index declined 0.1 percent.The euro advanced 0.1 percent to $1.1417.The Japanese yen fell 0.1 percent to 113.28 per dollar.The British pound added 0.3 percent to $1.3079, the strongest in nearly three weeks.The MSCI Emerging Markets Currency Index was little changed. NY time; the Nasdaq Composite added 0.8 percent.The Stoxx Europe 600 Index dipped 0.2 percent.The MSCI Emerging Market Index rose 0.2 percent.

Government bonds in Europe and the USA were mixed, but mostly little changed. US Treasury yields ticked higher and the US dollar was steady.

The price of copper went down by 1.5% to trade at $2.7645 per pound. The offshore yuan slipped 0.1 per cent to 6.9025 per dollar. West Texas Intermediate crude lost 0.7 per cent to US$62.68 a barrel.

- Trump scheduled to meet Vladimir Putin on Armistice Day celebrations on November 11.

Other reports by Click Lancashire

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