(Bloomberg) — Stocks in Asia were set for a muted start Wednesday as investors assessed a report that tariffs on billions of dollars of Chinese goods will likely stay in place until after the presidential election. U.S. stocks edged lower with Treasury yields.
Futures were flat in Japan and Australia and nudged higher in Hong Kong. The S&P 500 Index slipped after rising to an intraday record high earlier in Tuesday’s session. While positive results from big banks had pushed prices higher, concerns remain about progress in U.S.-China trade negotiations. Treasuries climbed after a gauge of underlying inflation rose less than forecast.
The two sides have an understanding that no sooner than 10 months after the signing of the agreement at the White House Wednesday, the U.S. will review progress and potentially trim tariffs now in place on $360 billion of imports from China, according to people familiar with the matter.
“There was a lot of optimism built up and now this just throws a whole new wrench into that optimism,” said Ryan Nauman, a market strategist at Informa Financial Intelligence’s Zephyr. It raises “a lot of questions moving forward.”
Elsewhere, oil ticked higher and gold remained steady.
Here are some events to watch for this week:
The biggest American financial institutions kick off earnings season, with Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley and BlackRock Inc. next up.The Fed’s so-called beige book is due on Wednesday.China GDP comes on Friday.
These are the major moves in markets:
The S&P 500 fell 0.2% on Tuesday.Futures on Japan’s Nikkei 225 were flat.Hang Seng futures earlier rose 0.6%.Futures on Australia’s S&P/ASX 200 Index added 0.1%.
The yen was at 109.98, little changed.The offshore yuan dipped 0.1% to 6.8910 per dollar.The euro bought $1.1126, down 0.1%.The Bloomberg Dollar Spot Index was flat.
The yield on 10-year Treasuries dropped four basis points to 1.81%.
West Texas Intermediate crude oil rose 0.4% to $58.31 a barrel.Gold was steady at $1,546.33 an ounce.
(Corrects spelling of Hong Kong in second paragraph)
–With assistance from Claire Ballentine, Vildana Hajric and Romaine Bostick.
To contact the reporter on this story: Adam Haigh in Sydney at firstname.lastname@example.org
To contact the editors responsible for this story: Christopher Anstey at email@example.com, Cormac Mullen
For more articles like this, please visit us at bloomberg.com
©2020 Bloomberg L.P.