S&P 500 Index climbs from 14-month low as Fed looms

Bloomberg

The S&P 500 Index climbed from a 14-month low as investor nerves seemed to steady a day after a rout in US stocks.
US stock gains were led by technology and health companies. The Stoxx Europe 600 Index pared losses by more than half to trade slightly lower on the day. Treasuries and the Japanese yen advanced amid a lingering mood of caution after Chinese President Xi Jinping disappointed investors by offering no fresh commitments to stimulate the world’s second-biggest economy in a keynote speech.
Oil extended recent declines, with the benchmark US grade briefly falling below $48 a barrel, as traders fretted about a glut of supply as well as the outlook for growth. The dollar slipped and the euro stayed higher even as German business sentiment deteriorated to its lowest level in more than two years and talk of a chaotic Brexit increased.
With equities beaten down in recent weeks, stock investors are increasingly pinning their hopes on the US Federal Reserve taking a dovish turn this week. While a rate hike is widely expected, historically the central bank has rarely raised borrowing costs during such market turmoil. President Donald Trump continued with his criticism of policy makers, warning them to avoid “yet another mistake” just hours before their two-day meeting begins.
And beyond the Fed looms more trouble for markets: on Friday night, spending authority expires for a swathe of the US government unless Trump and Congress reach a deal.
The Fed will hold its final policy meeting of 2018 until Wednesday. The rate decision will be followed by a press conference with Chairman Jerome Powell. The Bank of Japan’s monetary policy decision is due on Thursday. A Bank of England decision is also on Thursday. A partial US government shutdown could start this week if lawmakers and Trump fail to resolve
how much money to allocate for Trump’s wall along the Mexican border.
The S&P 500 Index rose 0.8 percent in New York. The Stoxx Europe 600 Index dipped 0.3 percent. The Nikkei-225 Stock Average fell 1.8 percent to the lowest since March. The MSCI Emerging Market Index fell 0.4 percent.
The Bloomberg Dollar Spot Index sank 0.2 percent. The euro increased 0.2 percent to $1.1349. The Japanese yen strengthened 0.3 percent to 112.54 per dollar.
The yield on 10-year Treasuries declined two basis points to 2.84 percent. Germany’s 10-year yield dipped one basis point to 0.24 percent. Britain’s 10-year yield rose one basis point to 1.27 percent.
West Texas Intermediate crude declined 1.8 percent to $48.99 a barrel.
Gold was little changed at $1,246.50 an ounce.