Stocks Advance on Prospect of Car-Tariff Delay: Markets Wrap

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(Bloomberg) — U.S. stocks advanced on the prospect that President Donald Trump will delay imposing tariffs on auto imports. Treasuries and the dollar pared gains.

The S&P 500 headed for the biggest two-day gain in six weeks after Bloomberg reported the president would postpone by up to six months a decision on car tariffs that was due by Saturday. German carmakers surged, lifting European shares. The tech-heavy Nasdaq 100 lead benchmarks as Treasury Secretary Steven Mnuchin added to hopes of a trade deal when he said American officials were in “serious” talks with China.

Treasuries pared gains after the two-year yield touched the lowest level since February 2018, while the 10-year rate traded around 2.38%. Oil reversed losses to rise above $62 a barrel. The dollar nearly erased its advance against major peers, while the Japanese yen was little changed after an earlier rise.

The possibility that the president will delay trade penalties on cars helped ease investors concerns about Trump’s protectionist turn. However, anxiety is still hovering over markets after unexpectedly weak U.S. and Chinese economic numbers Wednesday heightened concerns the trade war with China could weigh on a global economy that’s already staggering.

“Right now the market is just kind of in a wait-and-see mode. It’s the way the market is right now,” said Peter Jankovskis, co-chief investment officer at Oakbrook Investments. “The main story still is U.S.-China.”

Here are some notable events coming up this week:

Earnings this week include Cisco, Nvidia.Bank of Indonesia has an interest rate decision on Thursday.Australian unemployment is out on Thursday.

And here are the main market moves:

Stocks

The S&P 500 Index rose 0.7% as of 12:09 p.m. New York time.The Stoxx Europe 600 Index gained 0.5%.Germany’s DAX Index advanced 0.9%.The MSCI Emerging Market Index added 0.2%.The MSCI Asia Pacific Index advanced 0.5%, the biggest gain in six weeks.

Currencies

The Bloomberg Dollar Spot Index climbed 0.1%.The euro was little changed at $1.1208.The British pound dipped 0.3% to $1.2867.The Japanese yen rose 0.1% to 109.48 per dollar.

Bonds

The yield on 10-year Treasuries fell three basis points to 2.38%.Germany’s 10-year yield dipped three basis points to -0.1%.Britain’s 10-year yield declined four basis points to 1.063%.

Commodities

West Texas Intermediate crude rose 0.1% to $61.81 a barrel.Gold advanced 0.1% to $1,297.00 an ounce.

–With assistance from Charlotte Ryan, Vildana Hajric and Todd White.

To contact the reporter on this story: Randall Jensen in New York at rjensen18@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Yakob Peterseil

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

2019-05-15 16:12:00

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