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Bloomberg
Technology shares led gains among US stocks following a mixed session in Europe and Asia as investors looked ahead to a busy week of corporate earnings. Oil gained amid tensions in the Persian Gulf.
Apple rallied after Morgan Stanley boosted its price target, while Micron Technology was lifted to buy from neutral by Goldman, as were Lam Research and Applied Materials.
The Dow Jones Industrial Average was little changed. Stocks slipped throughout Asia, led by declines in Shanghai and Hong Kong as traders watched escalating tensions there. Treasuries advanced after traders pared bets the Federal Reserve will slash rates by a half-point this month.
“We will start to get results from some of the big multi-national industrials and tech firms, which should shed more light on the effects of the trade war and therefore could move markets on a broad scale,†Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report†newsletter, wrote in a note to clients.
Oil rose again, heading for its biggest gain in more than a week, after Iran’s seizure of a British tanker fanned concerns of a confrontation that could disrupt Middle East supplies.
Core European government bonds gained, while the pound slumped after a forecast showed Brexit may have already pushed the UK into a technical recession, and as Conservative Party members vote on new leadership.
Investors will be eyeing earnings this week for signs of economic slowdown and any indication that trade strife is affecting companies’ bottom lines. On the trade front, Chinese state media reported face-to-face negotiations with the US may resume soon, as Beijing considers a plan to boost American soybean purchases to sweeten a deal, people familiar with the matter said.
The Fed, meanwhile, is in a blackout period with regard to policy communications ahead of next week’s interest rate decision.
Elsewhere, gold was steady while emerging-market stocks slid. Earnings season rolls on with companies including: Amazon, Alphabet, Unilever, Caterpillar, Coca-Cola, McDonald’s and Boeing.
UK Prime Minister Theresa May’s successor is announced on Tuesday, with Boris Johnson expected to become the new Conservative leader and PM.
Thursday brings the European Central Bank policy decision. Economists widely expect officials to signal their readiness to cut interest rates and potentially broaden stimulus.
Some see the chance of an immediate rate cut. ECB President Mario Draghi holds a briefing afterward.
The S&P 500 Index rose 0.2 percent as in New York. The Nasdaq Composite Index gained 0.6 percent and the Dow Jones Industrial Average less than 0.1 percent. The Stoxx Europe 600 rose 0.1 percent. The MSCI Emerging Market Index eased 0.3 percent. The MSCI Asia Pacific Index dropped 0.5 percent.
The Bloomberg Dollar Spot Index rose 0.1 percent, the second consecutive gain.
The euro was little changed at $1.1217, while the yen weakened 0.2 percent to 107.90 per dollar. The British pound fell 0.2 percent to $1.2472.
The MSCI Emerging Markets Currency Index was little changed. The yield on 10-year Treasuries eased 2 basis points to 2.03 percent. Germany’s 10-year yield dropped 2 basis points to -0.35 percent. Britain’s 10-year yield fell 2 basis points to 0.71 percent.
West Texas Intermediate rose 1.1 percent to $56.25 a barrel.Gold increased 0.1 percent to $1,427 an ounce.
The Bloomberg Commodity Index fell less than 0.1 percent.