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Bloomberg
European shares advanced for a fifth day, while the pound retreated at the start of a busy week that includes a meeting between Xi Jinping and Donald Trump and culminates in the monthly US jobs report.
The Stocks Europe 600 Index gained as much as 0.4 percent before paring the advance, while the euro was little changed after its longest run of losses versus the dollar since February. Energy companies led a gain in emerging-market shares as oil held above $50 a barrel. South Africa’s rand slumped for a sixth day after Finance Minister Pravin Gordhan was dismissed in a political shake-up.
As the second quarter gets going, political developments threaten to cloud the improving global economic outlook. The first major data release showed confidence among Japan’s large manufacturers improved for a second consecutive quarter in the first three months of the year. The pound fell for the first time in three days against the dollar as UK manufacturing growth unexpectedly cooled.
“The challenge for markets in an event-filled week will be to contend with the conflicting signals stemming from the Trump administration’s fiscal and trade policy agendas,” ING Groep NV strategists, led by Chris Turner, wrote in a note. “In particular, investors will be asking whether the White House clampdown on trade will be aggressive enough to directly thwart any US reflation sentiment founded on renewed tax reform hopes.”
The Reserve Bank of Australia is projected to keep rates steady on Tuesday, while India’s central bank will probably hold rates. Inflation numbers are due from Thailand, South Korea and the Philippines.
Stocks: The Stoxx Europe 600 climbed 0.2% as of 11:37 a.m. in London, after increasing 5.5 percent for the first three months of the year, the best quarter in two years. Futures on the S&P 500 rose 0.1% after losing 0.2%.
Currencies: Britain’s pound fell as much as 0.5 percent to $1.2492 after the worse-than-expected manufacturing data. South Africa’s rand tumbled 1.2 percent against the dollar, the most among major global currencies. The euro was little changed at $1.0655 and the Bloomberg Dollar index climbed 0.2 percent.
Bonds: The yield on 10-year UK debt fell 2 basis points, with German Bunds down a similar amount
Commodities
WTI crude was little-changed at $50.62 a barrel, after the biggest weekly gain of the year. Crude stockpiles are starting to decline in a sign that the production cuts implemented this year are bringing the market to balance, according to OPEC’s Secretary-General Mohammad Barkindo.
Gold fell 0.3 percent to $1,245.70 per ounce. The metal has alternated between gains and losses for the past six days.