Stocks rebound in thin trading

Bloomberg

European stocks joined a rally across most Asian equities following three days of losses, though trading volumes were once again depressed. Havens including gold, the yen and bonds retreated even as the likes of Bridgewater Associates’ Ray Dalio said he was reducing risk.
The Stoxx Europe 600 Index rebounded from the lowest in more than a week as miners and chemical makers led gains across almost every sector. US equity-index futures were also in the green after the S&P 500 Index halted a two-day decline on Monday. Most European government bond yields followed Treasuries higher, while the Bloomberg dollar index ended a two-day slide. The euro stayed lower in the wake of data showing German investor confidence declined for a third month. Crude reversed a gain before US government data forecast to show stockpiles fell.
Investors seem to be getting over some of the sensitivity that characterized the past few days following political turmoil in Washington, fresh terrorist attacks in Europe and ongoing tension between the US and North Korea. Nonetheless Dalio, the billionaire founder of the world’s largest hedge fund, said he’s “tactically reducing” risk because he’s concerned about growing internal and external conflict “leading to impaired government efficiency” in the US, according to a LinkedIn post Monday.
With little in the way of top-tier economic data out this week, markets are set to focus next on the annual conference of global central bankers hosted by the Kansas City Federal Reserve Bank at Jackson Hole, Wyoming. It starts on Thursday.
Amazon.com Inc.’s bid for Whole Foods Market Inc. faces a shareholder vote on Wednesday. Combined sales of new (data Wednesday) and previously owned (Thursday) US homes probably edged up in July from the prior month, indicating a still robust real estate market held in check by rising property prices, economists forecast. A verdict in the graft trial of Samsung Group heir Jay Y. Lee is due Friday. Botswana, Hungary, Indonesia, Kazakhstan and Tunisia set monetary policy.
The Stoxx Europe 600 Index jumped 0.7 percent as of 8:45 a.m. in New York, the largest climb in more than a week on a closing basis. The UK’s FTSE 100 Index jumped 0.8 percent, the biggest increase in almost three weeks. Germany’s DAX Index jumped 1.1 percent, the largest surge in more than a week. Futures on the S&P 500 Index jumped 0.3 percent, the biggest increase in more than a week.
The Bloomberg Dollar Spot Index rose 0.3 percent, the largest advance in a week. The euro sank 0.5 percent to $1.1757, the biggest dip in more than two weeks. The British pound fell 0.6 percent to $1.2819, the weakest in eight weeks on the largest fall in a week. The yield on 10-year Treasuries gained three basis points to 2.21 percent. Germany’s 10-year yield climbed one basis point to 0.41 percent. Britain’s 10-year yield gained three basis points to 1.101 percent. West Texas Intermediate crude decreased 0.3 percent to $47.24 a barrel. Gold fell 0.5 percent to $1,285.07 an ounce, the largest fall in a week.
Japan’s Topix index fluctuated before ending the local session less than 0.1 percent higher, while the Kospi index gained 0.4 percent as did Australia’s main gauge. Hong Kong’s Hang Seng Index rose 0.9 percent, outperforming other equity markets in Asia, on strong earning results. The Japanese yen dipped 0.4 percent to 109.43 per dollar, the first retreat in a week.