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Bloomberg
US equities were mixed following gains in Europe as investors weighed the latest corporate earnings and the chances of a trade breakthrough between the world’s biggest economies.
Industrial companies led advances as 3M Co struck an optimistic tone after reporting a profit that beat estimates, while technology stocks dragged on major US indexes. Almost all sectors climbed in the Stoxx Europe 600. Treasuries and the dollar were little changed. West Texas crude climbed as the US slapped a de facto ban on oil from Venezuela.
After a robust start to the year for equities, investors are looking for reasons to chase the rally in a corporate earnings season that’s been indecisive so far. Chinese Vice Premier Liu He arrived in Washington for what the White House is describing as “very, very important†trade talks this week. Against the backdrop of US-China stress
and geopolitical tensions in Venezuela, traders they also need to navigate the Federal Reserve rate decision, developments in the UK’s Brexit process and a potential slew of American economic data that was delayed by the government shutdown.
“Even though this has been a good start of the year,’’ investors now “want to be kind of defensive,’’ Ben Emons, the managing director of global macro strategy at Medley Global Advisors, said on Bloomberg TV. “Earnings will not grow strongly, and we still deal with leverage in the corporate sector that has not been unwound in any way.’’
Elsewhere, Asian technology stocks underperformed after
US prosecutors filed criminal charges against Huawei Technologies Co, China’s largest smartphone maker.
West Texas crude climbed as the US slapped a de facto ban on oil from Venezuela. Emerging-market shares climbed and
gold touched the highest level since May. Tech giants Microsoft, Facebook, Alibaba, Qualcomm, Tesla, Samsung and Sony announce earnings. The EU Parliament debates Brexit on Wednesday. Wednesday Fed Chairman Jerome Powell holds a news conference after the FOMC rate decision.
The S&P 500 Index increased 0.1 percent in New York. The Stoxx Europe 600 Index gained 1 percent. The Nikkei-225 Stock Average climbed 0.1 percent. The MSCI Emerging Market Index gained 0.2 percent.
The Bloomberg Dollar Spot Index was little changed. The euro slipped 0.1 percent to $1.1416. The Japanese yen sank 0.1 percent to 109.43 per dollar. The British pound climbed 0.1 percent to $1.3173. The yield on 10-year Treasuries sank one basis point to 2.73 percent.