Stocks edge higher amid lull in trade-war; Treasuries drift

Bloomberg

European stocks and US equity-index futures edged higher on Tuesday and most Asian shares rose amid a lull in trade-war headlines and simmering tension in Hong Kong. Treasuries fluctuated after a long weekend.
The Stoxx Europe 600 Index headed for the first gain in three days as most major national benchmarks in the region advanced. Automakers climbed amid reports the US may delay tariffs on European cars. Futures for the main American gauges were slightly firmer a day after the S&P 500 Index fell for the first time in four sessions. Shares in Hong Kong climbed after sharp losses, when escalating violence unnerved investors. Stocks saw modest gains in Tokyo and Shanghai, and outperformed in Seoul.
With most earnings now out of the way and major central banks thought to be on hold, investor focus has turned firmly to trade. They appear to be in a cautious mood after hopes for a first-phase deal between the US and China fuelled a risk rally and bond sell-off last week, before President Donald Trump’s comments over the weekend cooled some of the optimism.
“The markets are already pricing in a lot of trade optimism,” Janet Mui, global economist at Cazenove Capital, told Bloomberg TV. But “the whole situation is very fluid. We still haven’t got a definite answer on where they’re going to potentially sign a deal,” she said.
Elsewhere, the pound pared some of Monday’s jump. The yen slipped with gold and the Swiss franc. New Zealand’s dollar declined after falling inflation expectations spurred bets for a rate cut.
President Trump is due to deliver lunchtime remarks at the New York Economic Club.
Earnings season is slowing. Reports are due this week from companies including Tencent, Japan Post Bank and Mitsubishi UFJ.
A New Zealand rate decision is due on Wednesday, with market pricing tilting in favour of a cut.
Fed Chairman Jerome Powell addresses the Joint Economic Committee of Congress in Washington on Wednesday. Minneapolis Fed President Neel Kashkari speaks in La Crosse, Wisconsin.
Thursday brings China retail sales and industrial production data.
US retail sales on Friday are forecast to rebound in October after unexpectedly falling the prior month.
Futures on the S&P 500 Index were little changed in London. The Stoxx Europe 600 Index gained 0.2%. The UK’s FTSE 100 Index climbed 0.3%. The MSCI Asia Pacific Index rose 0.4%. The MSCI Emerging Market Index rose 0.5%.
The Bloomberg Dollar Spot Index gained 0.1%. The euro dipped 0.1% to $1.1025. The British pound decreased 0.2% to $1.2833. The Japanese yen fell 0.1% to 109.17 per dollar.
The yield on 10-year Treasuries decreased one basis point to 1.93%. Germany’s 10-year yield increased less than one basis point to -0.24%. Britain’s 10-year yield declined one basis point to 0.803%.
Gold dipped 0.1% to $1,454.91 an ounce. West Texas Intermediate crude gained 0.6% to $57.21 a barrel.

Hong Kong stocks eke out gain after $118b wipeout
Bloomberg

Hong Kong stocks rose, following Monday’s $118 billion slide, despite protests continuing across the city, including the Central financial district.
The Hang Seng Index closed up 0.5% after tumbling 2.6% on November 11.
Citic Ltd and Tencent Holdings Ltd led gains. Local developers and landlords slipped after starting the session higher. The Hong Kong dollar was little changed.
Monday’s tumble came after a rally in the city’s shares that had added $530 billion amid a liquidity-fuelled surge in global equities.
The buying momentum was so strong it had sent the Hang Seng gauge into overbought territory for the first time since April.
Protests have escalated in violence after one student died falling from a garage during a police dispersal operation and another was shot by a policeman.
Protesters also set a man alight. Monday’s clashes led to about 260 arrests and left nearly 100 people injured.