US stocks swing between gains and losses; oil steadies

Bloomberg

US stocks swung between gains and losses as lingering anxiety about US and Chinese trade relations hung over global financial markets. Treasury two-year note yields rose to a one-decade high, while oil steadied.
The S&P 500, Dow Jones Industrial Average and the Nasdaq Composite all pushed higher briefly after starting the day in the red, before settling into little changed territory. The Nasdaq 100 Index rose, led by gains in Apple, Microsoft, Facebook, Amazon and Google parent Alphabet. European shares remained lower.
In emerging markets, shares fell while a gauge of currencies erased earlier gains.
“People are waiting for some additional news on the trade front,” said Peter Jankovskis, co-chief investment officer at Oakbrook Investments. “That’s a big thing that’s overhanging the market right now.”
Shares fell earlier after the World Trade Organization said China would ask for permission to retaliate against the US due to its failure to modify anti-dumping methodologies.
Worsening relations between the US and China have been at the top of the agenda, with the Trump administration ready to boost tariffs on even more goods. That’s overshadowed optimism for a trade deal between the EU and the world’s biggest economy. The memory of summertime volatility and weakness in commodities also still provides plenty of reasons for caution as investors brace for meetings of central banks of Argentina, Turkey and Russia this week.
Elsewhere, WTI oil held near $68 a barrel after speculation increased over whether a hurricane approaching the US. East Coast would disrupt supplies and drive prices higher.
Argentina’s central bank is set to hold its key rate at 60 percent today and officials may signal some relief for the economy and the peso.
Policy decisions from the Bank of England and the European Central Bank on Thursday. Russian President Vladimir Putin and Japanese Prime Minister Shinzo Abe will meet. Apple unveils its latest iPhones on Wednesday. Australia employment is due Thursday. China releases August industrial production, retail sales data on Friday.
The S&P 500 Index was little changed in New York, while the Dow Jones Industrial Average rose less than 0.1 percent and the Nasdaq Composite Index fell less than 0.1 percent.
The Stoxx Europe 600 Index fell 0.4 percent. The MSCI All-Country World Index dipped 0.2 percent to the lowest in almost four weeks. The MSCI Emerging Market Index decreased 0.7 percent to the lowest in about 14 months.
The Bloomberg Dollar Spot Index advanced 0.2 percent. The euro declined 0.2 percent to $1.1577. The British pound declined 0.3 percent to $1.2991, the largest decrease in more than a week. The Japanese yen decreased 0.2 percent to 111.33 per dollar. South Africa’s rand climbed 0.7 percent to 15.0911 per dollar, the strongest in more than a week on the largest climb in more than two weeks. The MSCI Emerging Markets Currency Index dipped 0.1 percent to the lowest in 17 months.
The yield on two-year Treasuries gained one basis point to 2.73 percent, the highest in more than 10 years. The yield on 10-year Treasuries gained two basis points to 2.95 percent, the highest in almost five weeks. Britain’s 10-year yield advanced two basis points to 1.489 percent, the highest in 16 weeks. The spread of Italy’s 10-year bonds over Germany’s decreased four basis points to the smallest premium in five weeks.
The Bloomberg Commodity Index dipped 0.2 percent. West Texas Intermediate crude climbed 0.3 percent to $67.71 a barrel, the first advance in a week and the biggest increase in more than a week. LME copper fell 0.6 percent to $5,873.50 per metric ton.