Stocks mixed as technology weighs; Treasuries drop

Bloomberg

U.S. stocks fluctuated, while Treasuries fell as investors turned attention to the latest Nafta talks. The dollar edged lower.
The S&P 500 Index was mixed as technology firms weighed on benchmarks, led by semiconductor maker Advanced Micro Devices Inc., while banks paced gains as the 10-year Treasury yield advanced above 3.07 percent. The dollar fell against most peers and the Mexican peso reversed a rise after a report said the US and Canada are unlikely to reach a deal on Nafta this week. West Texas crude traded above $70 a barrel.
In Europe, carmakers helped buoy stocks after data showed auto registrations soared in August, while the pound dropped on reports of another snag in Brexit negotiations. Most European bonds slid, led by Italian securities, as wrangling over the country’s budget continued.
Earlier, shares in Japan, Hong Kong and China climbed. Emerging-market equities advanced for the fifth time in six sessions as their currencies strengthened. The yuan gained after China said it won’t devalue its currency.
While the threat to global growth remains, investors have had months to form a view on the trade war and stock markets have been signaling an improving sentiment of late: A basket of global shares is rising for the seventh time in eight sessions. But that perspective could be in jeopardy if tariffs have a bigger-than-expected impact on the economy. As the week grinds on, Brexit remains a key item on the agenda as the UK and European Union battle against the clock for an accord.
Elsewhere, oil rose after gaining on Tuesday when Saudi Arabia expressed comfort with Brent prices rising above $80 a barrel. The yen edged up after the Bank of Japan left its policy unchanged, keeping monetary stimulus in place. European PMIs are due on Thursday; US PMIs out on Friday, The Organization of Petroleum Exporting Countries and its allies meet in Algiers this weekend.
The S&P 500 Index rose 0.1 percent in New York. The Stoxx Europe 600 Index gained 0.3 percent. The MSCI World Index of developed countries gained 0.2 percent to the highest in almost three weeks. The MSCI Emerging Market Index climbed 0.8 percent.
The Bloomberg Dollar Spot Index fell less than 0.1 percent to the lowest in three weeks. The euro declined 0.1 percent. The Japanese yen gained 0.1 percent. The Turkish lira advanced 2.1 percent to 6.2510 per dollar. South Africa’s rand gained 1.8 percent to 14.6442 per dollar, the strongest in three weeks on the largest climb in almost 10 weeks. The MSCI Emerging Markets Currency Index climbed 0.3 percent, the highest in more than two weeks.
The yield on 10-year Treasuries rose two basis points to 3.07 percent. Germany’s 10-year yield dipped less than one basis point to 0.48 percent, the first retreat in a week. Italy’s 10-year yield gained five basis points to 2.836 percent, the largest rise in almost two weeks. Britain’s 10-year yield advanced two basis points to 1.593 percent, reaching the highest in seven months on its fifth straight advance.
West Texas Intermediate crude rose 1.2 percent to $70.65 a barrel.