The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
US stocks pared an advance after a key Democrat called into question the revamped Nafta deal, rekindling concern over trade. Crude rebounded from the worst rout in three years.
The S&P 500 looked for its first gain in five sessions, while technology shares all but erased a rise that topped 1 percent. Bill Pascrell, in line to chair the House trade subcommittee, said the Nafta deal needs changes to pass. Renewed selling in Apple weighed on tech-heavy indexes. Equities opened higher after consumer-price data offered mixed messages on the outlook for inflation. California utility PG&E tumbled after the company said it has fully drawn down revolving credit facilities.
Treasuries fell and the dollar slipped, with investors assessing an uneven reading on prices that is sure to weigh on Federal Reserve discussions over rate hikes before Chairman Jerome Powell makes public comments this evening. West Texas crude climbed above $56 a barrel after plunging for a record 12 straight days. Natural gas surged as unseasonably cold weather threatens the US Northeast.
The rout in crude arrived at an already challenging time for global equities, which have been digesting a downturn in the
tech sector, the ongoing trade spat between the two biggest economies as well as a higher-rate regime. With the Trump administration said to be holding off on imposing new tariffs on automobiles there is ground for some optimism, but Brexit and Italian risks linger, and key reports on the crude market are also imminent.
Focus will turn to Powell, with some observers expecting him to calm worries about the central bank pushing its interest rate-hike cycle too far.
In Europe, the Stoxx 600 was dragged down by sectors including mining and energy, though good news for autos helped offset the slide.
Elsewhere, Japanese stocks nudged upward, while shares declined in Hong Kong, China and South Korea.
India’s rupee rallied to an almost two-month high and its sovereign bonds advanced as the slump in oil prices deepened, easing investor concerns over the oil-importing nation’s current-account deficit. Emerging-market equities and gold pared declines.
Fed’s Powell discusses national and global economic issues with Dallas Fed President Robert Kaplan at an event hosted by the Dallas Fed. Theresa May was expected to ask her divided Cabinet ministers to back her Brexit deal or quit at a meeting on Wednesday.
The S&P 500 rose 0.2 percent in New York. The Nasdaq 100 fell 0.1 percent. The Stoxx Europe 600 Index lost 0.4 percent. Germany’s DAX Index slid 0.2 percent. The MSCI Asia Pacific Index dipped 0.2 percent to the lowest in two weeks. The MSCI Emerging Market Index advanced less than 0.05 percent.
The Bloomberg Dollar Spot Index dipped 0.1 percent. The euro gained 0.1 percent to $1.1305. The British pound advanced less than 0.05 percent to $1.2979. The Japanese yen decreased 0.1 percent to 113.91 per dollar.
The yield on 10-year Treasuries increased one basis point to 3.15 percent.