- Commodity Producers Rise With Metals; Dollar Gains
European shares rose as commodity producers rebounded with metals prices. Chinese equities led Asian markets lower, while the pound was steady after rallying Tuesday on news of a U.K. election.
The Stoxx Europe 600 Index climbed after the biggest one-day loss since November. Glencore Plc led gains among materials companies as zinc, aluminum and iron ore rose after sharp drops earlier in the week. Equity markets in China slipped, with the benchmark index in Shanghai tumbling for a fourth day. The pound remained near its strongest level this year ahead of a parliamentary vote for an election on June 8. The yield on Japan’s benchmark 10-year government note touched zero, while the Australian 10-year yield fell to its lowest since November.
The rebound in metals somewhat overshadowed geopolitical uncertainty and weaker-than-expected corporate earnings from heavyweights IBM and Goldman Sachs Group Inc. A vote in Britain will be preceded by the French presidential election, while a standoff over North Korea’s nuclear weapons program drags on.
The odds of the Federal Reserve raising interest rates in June have fallen to about 44 percent from more than 60 percent earlier in April as investors question the strength of the U.S. economy. They are also waiting for President Donald Trump’s proposed tax cuts and infrastructure plans to materialize.
Here are the main moves in markets:
- The Stoxx Europe 600 increased 0.1 percent as of 8:28 a.m. in London, after dropping 1.1 percent on Tuesday.
- The Shanghai Composite Index fell 0.8 percent, taking its four-day loss to 3.2 percent. It is at its lowest since Feb. 8. The main Shenzhen market was also down a fourth day.
- The Hang Seng Index slid 0.4 percent and the Hang Seng China Enterprises Index dropped below the 10,000 level for the first time in two months. The MSCI Asia Pacific Index retreated 0.4 percent.
- Japan’s Topix index was little changed, while Australia’s S&P/ASX 200 Index lost 0.6 percent and South Korea’s Kospi index fell 0.5 percent.
- Futures on the S&P 500 rose 0.2 percent after the underlying gauge slipped 0.3 percent Tuesday. IBM slumped in after-hours U.S. trading after its 20th consecutive quarterly sales decline.
- The yen slipped 0.4 percent to 108.84 per dollar after gaining 0.5 percent Tuesday. The Bloomberg Dollar Spot Index rose 0.2 percent following a two-day decline.
- The pound dropped less than 0.1 percent to $1.2836 after its 2.2 percent surge Tuesday. The euro slipped less than 0.1 percent.
- The Australian dollar slid 0.7 percent following its 0.4 percent drop the previous day.
- The yield on 10-year Treasuries rose three basis point to 2.20 percent after an eight-basis-point plunge Tuesday.
- The yield on similar-dated Japanese bonds briefly fell to zero for the first time since November before rising back to 0.004 percent. The yield on Australian notes due in a decade slid three basis points to 2.46 percent.
- Iron ore put the brakes on its decline, rising 2 percent after losing 8 percent in the first two days of the week.
- London Metal Exchange copper for delivery in three months rebounded, advancing 1.3 percent. Aluminum, zinc, lead and nickel all rose.
- Gold declined 0.4 percent to $1,284.24 an ounce after closing at the highest since November in the previous session.
- West Texas Intermediate crude oil was little changed at $52.39 a barrel, after two days of losses.