Stocks mixed in holiday-hit trading; dollar stays steady

Bloomberg

European stocks struggled for direction while futures for the S&P 500 advanced in a lackluster session overshadowed by the US holiday. There was a more downbeat mood in Asia where shares slipped even as the yuan extended a rebound.
Telecom companies were the biggest winners on the Stoxx Europe 600 Index, though declines in technology shares helped offset the move. Trading volumes were more than 35 percent below the 30-day average. Asian shares notched further losses even as China’s currency rose for a second day, though it pared some gains after a Reuters report that the central bank is comfortable with a weaker yuan. The yen nudged higher and the euro slipped, while the pound rose on data showing the UK’s services sector grew at the fastest pace in eight months in June.
While the People’s Bank of China yesterday gave assurances that the yuan won’t
be weaponised, governmental trade restrictions and market intervention remain key themes. The latest tit-for-tat moves include a Chinese court temporarily banning chip sales by an American tech firm, while tariffs on goods flowing the other way come into effect on Friday. The focus is shifting to a busy end to the week, when minutes from the last Federal Reserve meeting and jobs numbers are due.
Federal Reserve releases minutes of its June 12-13 meeting, when FOMC policy makers raised the benchmark rate a quarter point for the second time this year and lifted the median forecast to four total increases in 2018. US payrolls are due on Friday. Also on Friday, the US is scheduled to impose tariffs on $34 billion of Chinese goods. Beijing has said it will slap tariffs on an equal value on US exports including agricultural and auto exports.
Futures on the S&P 500 Index advanced 0.2 percent to 2,719.00 in New York. The Stoxx Europe 600 Index dipped less than 0.05 percent to 379.75. The MSCI All-Country World Index declined less than 0.05 percent to 502.81. The MSCI Asia Pacific Index decreased 0.2 percent to 163.38, the lowest in about nine months. The MSCI Emerging Market Index sank 0.3 percent to 1,054.04. Germany’s DAX Index dipped 0.4 percent to 12,297.39. The UK’s FTSE 100 Index sank 0.3 percent to 7,572.69.
The Bloomberg Dollar Spot Index dipped less than 0.05 percent to 1,179.29, the lowest in more than a week. The euro fell 0.1 percent to $1.1648. The British pound jumped 0.2 percent to $1.3216, the strongest in a week. The Japanese yen climbed 0.1 percent to 110.48 per dollar.
Germany’s 10-year yield advanced one basis point to 0.30 percent, the biggest gain in a week. Britain’s 10-year yield increased three basis points to 1.271 percent, the largest increase in a week. West Texas Intermediate crude dipped 0.5 percent to $73.80 a barrel, the largest decrease in more than a week. Brent crude advanced 0.1 percent to $77.80 a barrel.