Stocks mixed as trade worries linger; oil rallies

Bloomberg

US stocks fluctuated after the biggest selloff since April, as investors assessed the outlook for trade and its implications on global growth. The dollar rose and gold fell.
The S&P 500 Index gyrated at its 50-day moving average, while the Dow Jones Industrial Average clung to small gains. Technology shares hit hardest bounced back to give the Nasdaq indexes advances. Harley-Davidson Inc. slumped as President Donald Trump railed against the motorcycle maker for planning to move production abroad in response to tariffs. In Asia, Chinese equities entered a bear market on concern about the country’s ability to fight a trade war, while European shares bounced back from a rout.
Trade remained front and centre on Tuesday as investors await more clarity from the White House on its plans. National Trade Council Director Peter Navarro contradicted comments from the Treasury regarding Chinese investment in the US Europe and China look set to dig in against aggressive trade threats, which are increasingly showing up in business. As traders fret over the immediate outlook they also have doubts about the longer-term path for US rates; the Treasury curve is the flattest in years, stoking fears about the prospect of a recession.
“It’s taken a long time for the markets to feel like the trade commentary that’s been coming, particularly out of the US, had some meaning and so what we are seeing investors doing is finally taking a look at this and saying something might actually happen,” Sheila Patel, chief executive officer of Goldman Sachs Asset Management’s international division, said in a Bloomberg Television interview. “We’ve turned more cautious as have our investors.”
Elsewhere, Brent crude rose above $75 a barrel after US Energy Secretary Rick Perry suggested a planned production hike isn’t enough to stop a price spike. The pound weakened as a new Bank of England member spoke about the risks of raising interest rates too fast. Emerging-market stocks dropped. Metals retreated, with zinc falling a ninth day and gold touching the lowest price this year.
New Zealand and Indonesia monetary policy decisions on Thursday. US personal spending probably increased in May for a third month, economists forecast ahead of Friday’s data. China manufacturing and non-manufacturing PMI are due on Saturday.
The S&P 500 rose 0.2 percent to 2,721.12 in New York, reclaiming its 50-day moving average. The Nasdaq 100 Index climbed 0.2 percent. The Russell 2000 added 0.2 percent. The Stoxx Europe 600 Index ended higher by 0.2 percent. The MSCI Emerging Market Index sank 0.6 percent to the lowest in about 10 months. The MSCI Asia Pacific Index declined 0.1 percent to the lowest in eight months.
The Bloomberg Dollar Spot Index increased 0.1 percent, the first advance in a week. The euro fell 0.2 percent to $1.168, the biggest fall in a week. The British pound declined 0.2 percent to $1.3252, the largest fall in a week. The Japanese yen gained 0.1 percent to 109.65 per dollar, the strongest in more than two weeks. The Turkish lira jumped 1.3 percent to 4.622 per dollar.
The yield on 10-year Treasuries rose one basis point to 2.88 percent. West Texas Intermediate crude increased 0.2 percent to $68.21 a barrel. Gold decreased 0.7 percent to $1,256.48 an ounce.
Brent crude rose 0.9 percent to $75.42 a barrel.