US futures, Europe stocks fluctuate; pound weakens

Bloomberg

US equity futures and European stocks drifted on Wednesday as investors digested a flurry of corporate news amid a lull in trade-war headlines. Bonds were mixed and the pound weakened.
Contracts on the three main American equity benchmarks pointed to a directionless open a day after the S&P 500 Index closed just one index point higher at a new record amid positive US factory and housing data. However FedEx Corp dropped in early trading, having tumbled on Wednesday after the close when it cut its profit forecast for the second straight quarter.
The Stoxx Europe 600 Index fluctuated with national benchmarks mixed, with Germany’s gauge underperforming even as data showed business expectations improved for a third month. PSA Group rose and Fiat Chrysler Automobiles NV was steady as they agreed to combine in a deal to create the world’s fourth-biggest auto manufacturer. Volvo Group rallied after agreeing to sell its UD Trucks unit to Isuzu Motors Ltd for about $2.3 billion. Luxury TV maker Bang & Olufsen A/S plunged after issuing its fourth profit warning in a year.
The pound extended its losses after tumbling on renewed concern that a no-deal Brexit is possible, though it trimmed Wednesday’s decline when UK inflation came in steady.
With global stocks around all-time highs and the US-China trade accord announced on Friday yet to be signed, traders are finding few reasons to bid prices higher. The outlook for America’s monetary policy remains steady — two Federal Reserve policy makers reiterated that interest rates are on hold — yet the miserable results from FedEx were a reminder of the headwinds to growth.
“We are a little bit cautious going into 2020, not getting too carried away with the optimism that the equity markets are displaying right now,” said Susan Buckley, managing director of global liquid strategies at QIC Ltd. “We are still looking at an outlook of slow growth in 2020.”
Elsewhere, the impeachment inquiry of President Donald Trump comes to a head on Wednesday, with the House of Representatives set to vote on two articles that will likely set up January trial in Senate, where he’s expected to be acquitted.
Earlier in Asia, equities were mixed, with shares falling in Tokyo but rising in Hong Kong and India. The yuan was steady after China’s central bank injected liquidity into the financial system.
Meanwhile, West Texas crude pulled back after rising above $61 a barrel for the first time in three months. Bitcoin languished below $7,000. Futures on the S&P 500 Index were steady as of 7:19 a.m. New York time. The Stoxx Europe 600 Index was unchanged. The UK’s FTSE 100 Index was little changed. The MSCI Asia Pacific Index fell 0.1%.
The Bloomberg Dollar Spot Index increased 0.1%. The euro dipped 0.2% to $1.1124. The British pound fell 0.3% to $1.3089. The Japanese yen was little changed at 109.53
per dollar.
The yield on 10-year Treasuries dipped one basis point to 1.87%. Germany’s 10-year yield increased one basis point to -0.29%. Britain’s 10-year yield declined one basis point to 0.748%.West Texas Intermediate crude dipped 0.6% to $60.57 a barrel. Gold was little changed at $1,476.87 an ounce.