U.S. and European stock futures were largely flat Thursday in wake of the signing of the U.S.-China trade deal, expectations for which had driven global equities to record highs.
Asia saw a mixed session as investors took in the long-awaited deal between the world’s two largest economies. Australian and Korean shares gained, while stocks dipped in Shanghai and were little changed in Tokyo and Hong Kong. Treasuries ticked lower, with 10-year yields at about 1.8%, and West Texas Intermediate hovered around $58 a barrel. The S&P 500 Index on Wednesday notched a fresh all-time high.
With the U.S.-China phase-one deal now behind, investors may be casting around for fresh catalysts. Meantime, traders may sift through details in the agreement. Soybeans slumped overnight after China signaled purchases would be based on demand, rather than a pre-set amount.
“Given the amount of speculation by the markets and commentary by officials ahead of Wednesday’s signing, it is unsurprising markets have not rallied too strongly upon final signing,” said Hannah Anderson, a strategist at JPMorgan Asset Management. “Markets will likely continue to price in an elevated risk premium, which could be a source of volatility throughout 2020.”
Elsewhere, Russia’s ruble fluctuated. President Vladimir Putin replaced his long-serving prime minister and called for sweeping constitutional changes, fueling speculation that the Russian leader is moving to extend his grip on power beyond the end of his term in 2024.
Here are some events to watch for this week:
Earnings season has begun in the U.S., with reports from Morgan Stanley and Bank of New York Mellon Corp. due Thursday.China GDP, along with key monthly data for December, come on Friday.A final reading on the euro-zone’s December inflation is also due on Friday.
There are some of the main moves in markets:
Futures on the S&P 500 Index added 0.2% as of 3:50 p.m. in Tokyo. The underlying gauge rose 0.2% on Wednesday.Japan’s Topix index dipped 0.1%.Australia’s S&P/ASX 200 Index advanced 0.7%.Shanghai Composite index dipped 0.5%.Hong Kong’s Hang Seng index was flat.Euro Stoxx 50 futures were little changed.
The yen was at 109.96 per dollar, little changed.The offshore yuan was flat at 6.8911 per dollar.The Bloomberg Dollar Spot Index was flat.The euro bought $1.1149, little changed.
The yield on 10-year Treasuries was at 1.80%.Australia’s 10-year yield fell about three basis points to 1.18%.
West Texas Intermediate crude oil added 0.7% to $58.20 a barrel.Gold slipped 0.2% to $1,552.76 an ounce.
–With assistance from Nancy Moran.
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