Stocks mixed as Donald Trump talks Asia trade; bonds rise

Bloomberg

Stocks fluctuated and bonds advanced, while the euro and dollar slipped as President Donald Trump tried to tackle trade on his Asia tour.
US stocks opened slightly lower. The Stoxx Europe 600 Index swung between gains and losses, even as a European purchasing managers index indicated strong momentum at the start of the fourth quarter. Basic resources shares outperformed as the Bloomberg Commodity Index rose to the highest since March, and the S&P 500 Steel Index rose 1.2 percent.
News out of Asia was a dominant theme for many assets, with inflation comments from Bank of Japan Governor Haruhiko Kuroda, remarks on excessive leverage from his Chinese counterpart Zhou Xiaochuan and the grievances on the balance of trade from the US president, who goes on to South Korea and China this week. The yen declined before erasing the loss, and stocks in the region were mixed.
News on central bankers also will be closely watched. Federal Reserve Bank of New York President William Dudley plans to retire in the middle of next year. His early departure would mean changes at the Fed’s top three positions within a relatively short period. Trump announced last week that Fed Governor Jerome Powell will be nominated to replace Janet Yellen when her term expires in February. Vice Chairman Stanley Fischer retired in mid-October.
The European Commission’s chief Brexit negotiator Michel Barnier and UK Brexit Secretary David Davis resume talks. Earnings season continues with announcements from Toyota Motor Corp., BMW AG, Walt Disney Co., Adidas AG, and Siemens AG. European financial companies set to report include Intesa Sanpaolo SpA, Banca Monte dei Paschi di Siena SpA,Credit Agricole SA, Allianz SE and Zurich Insurance Group AG. Donald Trump continues on his first official trip to Asia as president, accompanied by Secretary of State Rex Tillerson and a group of US business leaders. New Jersey and Virginia will choose new governors in this off-year election. US consumer sentiment probably cooled in early November from a more than 13-year high. OPEC releases its World Oil Outlook.
The S&P 500 Index was essentially unchanged at 2,587.91 at 9:42 am in New York. The Stoxx Europe 600 Index climbed 0.1 percent. The UK’s FTSE 100 Index gained less than 0.05 percent to the highest on record. Germany’s DAX Index fell 0.1 percent. Japan’s Nikkei 225 Stock Average rose less than 0.1 percent to the highest since June 1996. The MSCI Asia Pacific Index increased less than 0.1 percent. The MSCI Emerging Market Index increased 0.3 percent.
The Bloomberg Dollar Spot Index was essentially unchanged. The euro fell 0.1 percent to $1.1595, the weakest in almost 16 weeks. The British pound climbed 0.2 percent to $1.3109. The Japanese yen dipped less than 0.05 percent to 114.10 per dollar.
The yield on 10-year Treasuries declined one basis point to 2.327 percent, the lowest in more than two weeks. Germany’s 10-year yield fell three basis points to 0.336 percent, the lowest in almost two months. Britain’s 10-year yield declined two basis points to 1.246 percent, the lowest in more than seven weeks. Japan’s 10-year yield decreased three basis points to 0.024 percent, the lowest in almost eight weeks.