Euro Halts Advance as Carmakers Weigh on Stocks

• Euro Halts Advance as Carmakers Weigh on Stocks

The euro headed for its first decline in three days as data showed the region’s economy cooling at the start of a week packed with corporate results and a Federal Reserve rate decision. Stocks were dragged down for a second day by carmakers amid a collusion probe.

The common currency halted the advance that saw it hit a two-year high after a composite Purchasing Managers’ Index fell in July to a six-month low, while the U.S. dollar traded sideways. Automakers extended a slump as European Union and German authorities said they are studying possible collusion among German producers. Crude gained as Saudi Arabia said it would make deep cuts to its crude exports in August. Bonds were mixed.

Earnings from industry bellwethers including Amazon.com Inc. and GlaxoSmithKline Plc and central bank policy discussions are set to provide the latest tests for the equity bull market, which has propelled the value of shares globally to $78 trillion. The euro-area manufacturing figures indicate that gross domestic product is expanding at the weakest pace in six months, adding further doubts about the sustainability of the stock rally at a time when the strong euro is weighing on exporters.

Investors are also bracing for further surprises from Washington after President Donald Trump sought to impose order in his White House in the face of a widening Russia probe. Senior adviser Jared Kushner confirmed four contacts with Russians during his father-in-law’s presidential campaign and the transition, but he described the encounters as unmemorable. Donald Trump Jr. and former Trump campaign Chairman Paul Manafort will go before Senate committees on Wednesday.

These are the notable moves in markets:

Stocks

• The Stoxx Europe 600 Index fell 0.4 percent at 8:01 a.m. in New York to the lowest in more than three months on a closing basis.
• The U.K.’s FTSE 100 Index slumped 1 percent in the largest decrease since June 15.
• Germany’s DAX Index fell 0.4 percent to the lowest in more than three months.
• The MSCI Emerging Market Index rose 0.3 percent to the highest in more than two years.
• Futures on the S&P 500 Index fell 0.2 percent. The underlying gauge closed flat on Thursday and Friday last week.

Currencies

• The euro fell 0.1 percent to $1.1647.
• The British pound rose 0.3 percent to $1.3039, the biggest gain in more than a week.
• The Bloomberg Dollar Spot Index was little changed at about the lowest in almost 15 months.
• The Japanese yen rose 0.3 percent to 110.82 per dollar on its fifth straight advance.

Commodities

• Gold rose 0.1 percent to $1,256.34 an ounce, the strongest in a month on a closing basis.
• West Texas Intermediate crude rose 0.4 percent to $45.96 a barrel.

Bonds

• The yield on 10-year Treasuries was little changed at 2.24 percent.
• Germany’s 10-year yield fell one basis point to 0.49 percent on its seventh consecutive decline.
• Britain’s 10-year yield rose less than one basis point to 1.183 percent.

Asia

• The MSCI Asia Pacific Index edged higher after rallying over the past two weeks to the highest level in more than 10 years. Japan’s Topix index slid 0.5 percent, after dropping as much as 1 percent earlier in the day. Australia’s S&P/ASX 200 Index lost 0.6 percent.
• The Shanghai Composite Index advanced 0.4 percent while Hong Kong’s Hang Seng was 0.5 percent higher. India’s Sensex climbed 0.6 percent to a record.
• The Australian dollar rose 0.4 percent, trading above 79 U.S. cents ahead of a speech by Reserve Bank of Australia Governor Philip Lowe on Wednesday.