Stocks traded mixed and gold futures rose to a record high as investors weighed simmering Sino-American tensions against signs the virus spread in the U.S. may be slowing. The dollar extended its recent slide.
Japanese shares fell, catching up to a two-day slide in global equities when Tokyo was closed for a holiday last week. Stocks in Hong Kong, Seoul and Australia edged higher, while futures on the S&P 500 and European contracts ticked up after last week’s declines. Gold traded above $1,900 an ounce.
Investors this week will be looking to the Federal Reserve’s meeting for clues on what comes next for policy amid expectations for more accommodation ahead. That comes as wrangling continues in Washington over a stimulus bill. On the virus front, cases fell in California, Arizona, Florida and New York.
“The July FOMC meeting should kick off a period from August into mid-September in which markets should price in an increasingly dovish, forward-looking Fed policy via lower real rates,” Morgan Stanley strategists including Matthew Hornbach wrote in a report. “This should benefit breakeven inflation rates, support risk assets, and weigh on the U.S. dollar.”
Here are some key events coming up:
- Earnings include, Apple, Amazon.com, Alphabet, Chevron, Rio Tinto, L’Oreal, Caterpillar, Samsung, Barclays and Credit Suisse.
- The Federal Open Market Committee holds its policy meeting on Tuesday, with an announcement due on Wednesday.
- U.S. second-quarter GDP is expected on Thursday.
- China PMI data comes Friday.
These are the main moves in markets:
Stocks
- Futures on the S&P 500 edged up 0.4% as of 10:25 a.m. in Tokyo. The gauge fell 0.6% on Friday.
- Japan’s Topix index lost 0.5%.
- South Korea’s Kospi added 1.2%.
- Hong Kong’s Hang Seng rose 0.8%.
- Australia’s S&P/ASX 200 Index advanced 0.3%
Currencies
- The yen rose 0.3% to 105.85 per dollar.
- The offshore yuan ticked up to 7.0067 per dollar.
- The euro bought $1.1688, down 0.3%.
- The Bloomberg Dollar Spot Index fell 0.5%.
Bonds
- The yield on 10-year Treasuries remained at 0.59%.
- Australia’s 10-year bond yield rose about three basis points to 0.90%.
Commodities
- West Texas Intermediate crude oil fell 0.1% to $41.26 a barrel.
- Gold was at $1,917.27 an ounce, up 0.8%.
Source: Bloomberg