Saturday , March 6 2021

Stocks mixed in the rally runs out of steam against the backdrop of the US-China trade talks



US stocks were mixed in N open as investors' appetite for risk with the & # 39; I was saturated after a rally against the background of the recovery of trade negotiations with China last week. The US dollar fell to its lowest level since October as traders assessed the dovish comments from Federal Reserve Chairman Systems Jerome Powell on Friday.

The S & P 500 fell the head of the weakness of public services and consumer goods stocks, while the Nasdaq rose slightly on tests of strength in shares of telecommunications services. Stoxx Europe 600 Index retreated for the third time in four sessions.

Investors are still struggling to choose a direction after the end of 2018. The wild seemingly soothing comments Powell on Friday and moves in China to strengthen its economy lifted the mood a little, but the risks threatening. And US lawmakers N still can not reach an agreement on the budget, resulting in the federal government closed the third week.

Recent trade talks between the US and China helped to sap demand for the dollar and Treasury yields fell after the jump on Friday. The pound fell against the euro, as the United Kingdom legislature sought to avoid a non-deal Brexit. The single currency remains firmly upward even data showed German factory orders fell more than expected in November.

In other developing countries, the stock market soared, and the Indonesian rupiah has shown growth in major currencies. West Texas Intermediate crude extended recent rebound to trade above $ 49 per barrel. Gold rose after China reported an increase in the number of holdings.

Here are some events, investors can focus on this week:

The US delegation in Beijing for trade talks with Chinese officials, the first face-to-face encounter with the time Trump and Xi agreed to a temporary peramir & # 39; e 1 December sees the release of minutes of the medium from the 18-19 December meeting, Fed policy. Powell will speak at the Economic Club in Washington, DC Thursday. UK Parliament resumes debate on the bill withdrawal Brexit, with premiership & # 39; EPAM Theresa May wants to avoid defeat in the vote set for the week of January 14th.

McCreath: Wait until the end of the recession in 2019, when the US and other China "duke it out"

BNN Bloomberg commentator Andrew McCreath says "a great challenge" in the market this year, or & # 39; is or not Donald Trump and Xi Jinping to reconcile trade. He also says that the focus of the US Federal Reserve Chair Jerome Powell has always been and "will always be" state of the US economy rather than the markets.

These are the basic steps in the markets:

stock

S & P 500 was down 0.3 percent as of 9:41 am in New York. 600 Stoxx Europe index dropped to 0.5 percent. MSCI All-Country World Index was almost unchanged. MSCI Emerging Market Index advanced 1.2 percent to its highest in nearly a month.

currency

Spot Index Bloomberg The dollar fell 0.4 percent to its lowest level since October. The euro rose 0.5 percent to $ 1.1448, the biggest gain in more than a week, US. The Japanese yen rose 0.2 percent to 108.29 per dollar. The British pound rose 0.3 percent to $ 1,276 USD, the strongest in more than a month. MSCI Emerging Markets Index currency advanced 0.4 percent to the highest in six months.

bonds

The yield on 10-year Treasury note fell three basis points to 2.641 percent. 10-year yield Germany fell less than one basis point to 0.20 percent. 10-year yield fell to Britain four basis points to 1.237 percent.

goods

Commodity Index Bloomberg was little changed. West Texas Intermediate crude advanced 1.4 percent to $ 48.62 per barrel, in the sixth consecutive win. Gold rose 0.5 percent to $ 1,292.33 an ounce.


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