(Bloomberg) — The risk-on mood that’s permeated global financial markets this week showed signs of easing as U.S. futures fluctuated and most European stocks slipped along with Asian equities. Treasuries swung from a gain to a loss after sliding on Thursday.
Contracts on all three main American stock indexes pointed to drift at the open after the gauges notched record highs in the previous session. Miners and travel companies weighed on the Stoxx Europe 600 Index. Core European bonds were steady while peripheral debt dropped led by Greek and Italian notes. The dollar gained while gold fell.
Investors appear to be catching their breath after a recent rally in risk assets, spurred by indications that the U.S. and China are heading toward an interim deal to halt the trade war. American and Chinese officials both said Thursday that a phase-one agreement would feature pledges to roll back tariffs on each others’ goods in phases.
“Moving from a non-escalation to a de-escalation, which would be rolling back the tariffs, has got everybody excited,” Adam Taback, global head of alternative investments at Wells Fargo Investment Institute, told Bloomberg TV.
On the data front, China’s exports declined less than expected in October as optimism rose about an interim trade deal, though imports contracted for a sixth straight month.
Elsewhere, an early Asia stocks rally fizzled out leaving most shares down in the region. Hong Kong equities were among the worst performing after the death of student protester threatened to inflame demonstrations planned for this weekend. Japanese 10-year government bond yields climbed alongside their Australian peers. China’s offshore yuan edged lower though stayed stronger than 7 per dollar. Oil erased most of this week’s gain.
Here are the main moves in markets:
Futures on the S&P 500 Index increased 0.1% as of 7:18 a.m. New York time.The Stoxx Europe 600 Index declined 0.2%.The U.K.’s FTSE 100 Index decreased 0.3%.The MSCI Asia Pacific Index dipped 0.3%.The MSCI Emerging Market Index decreased 0.6%.
The Bloomberg Dollar Spot Index rose 0.2%.The euro decreased 0.2% to $1.1031.The British pound dipped 0.1% to $1.2807.The Japanese yen declined 0.1% to 109.44 per dollar.
The yield on 10-year Treasuries rose one basis point to 1.93%.Germany’s 10-year yield declined one basis point to -0.24%.Britain’s 10-year yield increased less than one basis point to 0.795%.
Gold declined 0.6% to $1,459.66 an ounce.West Texas Intermediate crude declined 1.4% to $56.33 a barrel.
–With assistance from Joanna Ossinger and Adam Haigh.
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