The dollar returned to winning ways after a shaky start on Monday, reversing early losses to edge higher. European stocks traded sideways following a muted Asian session, and oil extended recent gains to hit another milestone.
The Stoxx Europe 600 Index was steady as most national gauges in the region drifted within a narrow range. Trading volumes were lighter than usual thanks to a holiday in the U.K. In Asia, shares reversed losses in Japan to end slightly higher, they climbed in Australia and finished little changed in Hong Kong. U.S. futures advanced. The yen fell as traders returned from Golden Week holidays, while the euro was also weaker. West Texas crude pushed above $70 a barrel for the first time since November 2014 as investors braced for the re-imposition of some U.S. sanctions on Iran. The 10-year Treasury yield ticked higher.
Geopolitics remain in focus this week with President Donald Trump saying he’ll decide by May 12 whether the U.S. stays in or pulls out of the Iran nuclear deal. Earnings season continues, and on the economic front traders will watch out for an expected acceleration in U.S. consumer prices. Emerging markets will also be closely followed after stocks and currencies extended their losses last week, with markets in Turkey and Argentina especially volatile.
Terminal users can read more in our markets live blog.
Some key events coming up this week:
- Nafta talks resume in Washington Monday. U.S. Commerce Secretary Wilbur Ross said talks could drag on for months.
- Chinese trade data is due Tuesday.
- It’s also the Australian annual budget Tuesday.
- Malaysia holds a general election Wednesday.
- Japanese Prime Minister Shinzo Abe hosts South Korean President Moon Jae-in and Chinese Premier Li Keqiang Wednesday.
- There’s a Bank of England policy decision on Thursday.
- U.S. inflation data for April is due the same day.
- Trump’s Iran-deal deadline is this week.
- Some of the company earnings due include: Walt Disney, Petrobras, Marriott, Toyota, Ambev, Deutsche Telekom, Sun Life Financial, Nvidia, Brookfield Asset Management, Anheuser-Busch InBev, Panasonic, Banco do Brasil, Nissan, Thomson Reuters, Sysco, Tyson Foods, SoftBank, Siemens and 21st Century Fox.
And these are the main moves in markets:
- The Stoxx Europe 600 Index gained less than 0.1 percent as of 8:20 a.m. London time.
- The MSCI World Index of developed countries fell less than 0.05 percent.
- The MSCI Asia Pacific Index decreased less than 0.05 percent, hitting the lowest in more than a week with its fifth straight decline.
- Japan’s Nikkei 225 Stock Average dipped less than 0.05 percent to the lowest in more than a week.
- The MSCI Emerging Market Index jumped 0.1 percent, the first advance in a week.
- The U.K.’s FTSE 100 Index increased 0.9 percent to the highest in almost 14 weeks on the biggest climb in more than a week.
- Futures on the S&P 500 Index climbed 0.2 percent to the highest in more than a week.
- The Bloomberg Dollar Spot Index climbed 0.1 percent to the highest in more than four months.
- The euro declined 0.3 percent to $1.1926, the weakest in almost 19 weeks.
- The British pound rose less than 0.05 percent to $1.3534, the first advance in almost two weeks.
- The Japanese yen dipped 0.2 percent to 109.29 per dollar.
- The yield on 10-year Treasuries rose one basis point to 2.96 percent.
- Germany’s 10-year yield dipped one basis point to 0.53 percent.
- Britain’s 10-year yield climbed one basis point to 1.4 percent.
- West Texas Intermediate crude increased 0.8 percent to $70.27 a barrel, the highest in more than three years.
- Gold fell 0.2 percent to $1,312.30 an ounce.