Europe Stocks, U.S. Futures Rise; Euro Edges Up: Markets Wrap - Yahoo Finance

Europe Stocks, U.S. Futures Rise; Euro Edges Up: Markets Wrap

(Bloomberg) -- Stocks in Europe climbed alongside U.S. equity futures as investors clung to their cautious optimism on the prospect of easier monetary policy. The euro edged higher for a third day.

The Stoxx Europe 600 rose as mining and chemicals shares rebounded. U.S. equity futures extended their advance after the S&P 500 index closed Thursday at a record high. Shares dipped in Australia and Japan and posted modest gains in Hong Kong, China and South Korea.

Government bonds extended their decline in Europe, heading for their worst week since at least October, after industrial output data for the euro region beat expectations. Treasury 10-year yields were steady near a one-month high.

The rally in risk assets is continuing to benefit from Federal Reserve Chairman Jerome Powell’s dovish comments this week, even after strong U.S. inflation data on Thursday offered a potential complication to policy makers when they set rates at the end of the month.

Meanwhile, weak data from both Singapore and China sent another warning shot to the world economy on the impact of trade tensions. The reports came after President Donald Trump complained that China hasn’t increased its purchases of American farm products, a promise he said he had secured at his G-20 meeting with the country’s president Xi Jinping last month.

Elsewhere, WTI oil headed for its sixth advance in seven sessions as operators in the Gulf of Mexico braced for Tropical Storm Barry.

Here are some key events coming up:

U.S. producer prices are due on Friday.

Here are the main moves in markets:

Stocks

Futures on the S&P 500 Index advanced 0.2% as of 10:14 a.m. London time to the highest on record.The Stoxx Europe 600 Index gained 0.2%, the first advance in more than a week.The U.K.’s FTSE 100 Index jumped 0.3%, the first advance in more than a week.The MSCI Asia Pacific Index dipped 0.1%.The MSCI Emerging Market Index decreased 0.2%.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1%, the lowest in more than a week.The British pound climbed 0.1% to $1.2536, the strongest in more than a week.The Japanese yen advanced 0.1% to 108.39 per dollar, the strongest in more than a week.The euro gained 0.1% to $1.1265, the strongest in more than a week.

Bonds

The yield on 10-year Treasuries increased one basis point to 2.14% to the highest in a month.Germany’s 10-year yield advanced three basis points to -0.19% to the highest in six weeks.Britain’s 10-year yield gained one basis point to 0.845% to the highest in more than three weeks.

Commodities

Gold increased 0.2% to $1,407.28 an ounce.West Texas Intermediate crude gained 0.8% to $60.70 a barrel to the highest in more than seven weeks.

--With assistance from Adam Haigh.

To contact the reporter on this story: Laura Curtis in London at lcurtis7@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Todd White

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

©2019 Bloomberg L.P.

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2019-07-12 09:28:00Z
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President Trump Is the Latest Critic of Facebook's Libra - WIRED

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1. President Trump Is the Latest Critic of Facebook's Libra  WIRED
2. There’s a big problem with Facebook’s Libra cryptocurrency  Ars Technica
3. Bitcoin falls sharply as Fed's Powell flags 'serious concerns' about Facebook's cryptocurrency  CNBC
4. Fed to Probe Facebook's Libra as Powell Points to 'Serious Concerns'  Bloomberg Markets and Finance
5. Fed's Powell sees climate change as 'longer-run' economic issue  Fox Business
6. View full coverage on Google News

https://www.wired.com/story/president-trump-latest-critic-facebooks-libra/

2019-07-12 02:46:00Z
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Asian shares dart between gains and losses before key China data - Investing.com

© Reuters. Passerbys walk past an electric screen showing Asian markets indices outside a brokerage in Tokyo

By Andrew Galbraith

SHANGHAI (Reuters) - Asian shares shuttled between small losses and gains on Friday as investors awaited China trade, lending and growth data, and as worries over Sino-U.S. trade tensions deflated optimism rooted in expectations of a Federal Reserve rate cut this month.

But while an anticipated Fed cut did little to spur gains in Asian markets, European equities were expected to open higher.

Pan-region Euro Stoxx 50 futures () were up 0.29% at 3,500, German DAX futures () were up 0.36% at 12,367 and futures () were up 0.34% at 7,475. Financial spreadbetters expect Paris' CAC () to open 0.38% higher.

Later on Friday, China will release June trade data, with analysts expecting exports to have fallen as weakening global demand and a sharp hike in U.S. tariffs took a heavier toll on the world's largest trading nation.

China is also due to release lending data on Friday, while second-quarter GDP figures are scheduled for Monday. The world's second-largest economy is expected to have slowed to its weakest pace in at least 27 years, raising hopes for more stimulus to fend off a sharper slowdown.

"You've got key data coming out, and I don't see why anyone would want to take a position until you've got that data," said Michael Every, head of Asia-Pacific financial markets research at Rabobank in Hong Kong.

MSCI's broadest index of Asia-Pacific shares outside Japan (), which moved in a narrow range through the day, was flat in the afternoon. Chinese shares rose, with the CSI300 () adding 0.85%.

Australian shares () dipped 0.3% and Japan's Nikkei stock index () started the day with small losses, but ended 0.2% ahead.

Underscoring the economic impact of global trade tensions, Singapore's economy grew at its slowest pace in a decade in the second quarter as electronics manufacturing output declined for a sixth consecutive month in May, and as exports saw their biggest decline in more than three years.

Amid the global slowdown, U.S. Federal Reserve Chairman Jerome Powell indicated on Thursday that a rate cut is likely at the Fed's next meeting.

Bets for such a cut remained strong despite a rise in U.S. consumer inflation in June, and helped to lift the on Thursday by 0.23% to end at a record closing high of 2,999.91 points.

While the Nasdaq Composite () fell 0.08%, the Dow Jones Industrial Average () also hit a record high close of 27,088.08 points, rising 0.85% on the day.

S&P 500 e-mini futures () were last up 0.23% at 3,011.

But a tweet by U.S. President Donald Trump on Thursday in which he said that China was not living up to promises it made on buying agricultural products from American farmers threatened to revive worries over trade.

"Markets have enjoyed a bit of a calm spot in the U.S.-China trade war saga since the announcement of a truce and restarting of trade talks at the G20 meeting. Unfortunately, headlines are once again beginning to emerge," ANZ analysts wrote in a morning note.

"While this wasn't a big market mover, it does serve as a reminder that things could flare up again," they said.

WEAK TREASURY AUCTION

U.S. Treasury yields had jumped on Thursday after demand was weak for a $16 billion 30-year bond auction and after the U.S. Labor Department said its consumer price index excluding food and energy rose 0.3% in June, the biggest increase since January 2018.

The poorly received auction had pushed the 30-year yield as high as 2.672% on Thursday, according to Refinitiv data.

Yields continued to rise on Friday. Benchmark 10-year Treasury notes () last yielded 2.1359%, up from a U.S. close of 2.12% on Thursday, while the 30-year yield touched 2.6511%, up from a close of 2.639%.

"The CPI report will have no material impact on Fed guidance nor have a significant influence on the great Fed debate around 25 or 50," said Stephen Innes, managing partner at Vanguard Markets Pte, referring to expectations of the size of a July rate cut.

"After all, the FOMC is unquestionably willing to let inflation run hotter after spending the better part of a decade trying to ignite those flames," he said.

The dollar fell 0.15% against the yen to 108.32 , while the euro () gained 0.19% to buy $1.1273.

The (), which tracks the greenback against a basket of six major rivals, was down 0.15% at 96.900.

Oil prices picked up as U.S. oil producers in the Gulf of Mexico cut by output by more than half, in the face of a tropical storm and as tensions in the Middle East remained.

Global benchmark Brent crude () gained 0.68% to $66.97 per barrel. U.S. West Texas Intermediate (WTI) crude () was up 0.61% to $60.57 a barrel.

Gold prices, dulled by the stronger-than-expected U.S. consumer inflation data, regained their shine thanks to renewed trade worries and rate cut expectations. last traded up 0.14% at $1,405.60 per ounce.

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2019-07-12 06:14:00Z
CBMieWh0dHBzOi8vd3d3LmludmVzdGluZy5jb20vbmV3cy9zdG9jay1tYXJrZXQtbmV3cy9hc2lhbi1zaGFyZXMtZGFydC1iZXR3ZWVuLWdhaW5zLWFuZC1sb3NzZXMtYmVmb3JlLWtleS1jaGluYS1kYXRhLTE5MjE2ODXSAQA

Clear-air turbulence, linked in past to climate change, injures 37 people on Air Canada flight that left Vancouver - Straight.com

Gold Bulls Bask In Easy-Fed Limelight - Kitco News

(Kitco News) - Gold prices are higher again in early U.S. trading Thursday. Federal Reserve Chairman Jerome Powell on Wednesday tipped his hand on an increasingly dovish U.S. monetary policy. That’s bullish for raw commodities, including the precious metals. There is also some fresh safe-haven demand for gold late this week. August gold futures were last up $9.80 an ounce at 1,422.30. September Comex silver prices were last up $0.069 at $15.295 an ounce.

The marketplace on Thursday is still digesting Powell’s comments from Wednesday. In is his speech to House lawmakers he said since the June FOMC meeting uncertainties, including world trade tensions, global growth and very low inflation, continue to cloud the outlook for the U.S. economy and these matters are not improving. He said the U.S. economic outlook is solid, but the prospects for other major world economies are worrisome. The marketplace read his remarks as fully dovish on U.S. monetary policy, which in turn strongly suggests the Fed will cut U.S. interest rates as soon as this month. That’s a bullish scenario for U.S. Treasuries, the U.S. stock market, and commodities markets, including the precious metals. However, it was a bearish development for the U.S. dollar on the foreign exchange market. Powell speaks to a U.S. Senate panel today.

Gold prices are also seeing safe-haven demand Thursday. Reports said a British warship had to step in and rescue a U.K. oil tanker that was being harassed by several Iranian vessels in the Strait of Hormuz.

In overnight news, the Bank of England said the risk of a “no deal” on Brexit has hurt the U.K. economy.

The key “outside markets” today see Nymex crude oil prices higher and trading just below $61.00 a barrel. The U.S. dollar index is lower early today.   

U.S. economic data due for release Thursday includes the weekly jobless claims report, the monthly USDA supply and demand report, real earnings, the consumer price index, the monthly Treasury budget statement, and the monthly chain store sales index. Several Federal Reserve officials are also scheduled to make speeches today.

Technically, the gold bulls have the firm overall near-term technical advantage. A six-week-old uptrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at the June high of $1,442.90. Bears' next near-term downside price breakout objective is pushing August futures prices below solid technical support at the July low of $1,384.70. First resistance is seen at today’s high of $1,429.40 and then at $1,435.00. First support is seen at $1,410.00 and then at $1,400.00. Wyckoff's Market Rating: 7.5

September silver futures bulls have the slight overall near-term technical advantage. Silver bulls' next upside price breakout objective is closing prices above solid technical resistance at the June high of $15.625 an ounce. The next downside price breakout objective for the bears is closing prices below solid support at $14.70. First resistance is seen at $15.51 and then at $15.625. Next support is seen at Wednesday’s low of $15.07 and then at $15.00. Wyckoff's Market Rating: 5.5.

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July 11, 2019 at 07:10PM

Dress delivers controversy - Vernon News - Castanet.net

Photo: Wendy Chambers

Last May, Wendy Chambers hung a red dress on the porch of her Vernon home in honour of missing and murdered indigenous women.

The REDdress Project started several years ago and has become a symbol for MMIW across the land.

On Wednesday, Chambers said she was surprised to find a hand-written note from who she said was the Canada Post letter carrier saying the dress is impeding the letter carrier from putting mail in her mail box.

She said the note was short and concise and not rude in anyway, but it still upset her.

Chambers admits she was initially angered by the note and made a post on the Vernon Rant and Rave Facebook page.

The post took off like wildfire with dozens of comments.

Chambers said she did not want to get the letter carrier in trouble, but was upset by the note, especially given what the red dress symbolizes.

She did not expect such a reaction from her post.

“I wanted to raise some awareness of this because obviously this person, who was a woman, did not know the symbolism behind the red dress, or she might have just pushed it aside like a curtain,” said Chambers. “It seems a little silly to me.”

Chambers knew her post create controversy, but she said that was the idea.

She did not intend to bash “the poor Canada Post employee. She was within her rights to leave me the note, but on a human level is it really that big of a deal.”

Chambers has moved the dress to the side of the entrance way, but she will not take it down.

Castanet reached out to Canada post for comment and they sent the following response: “Canada Post plans to reach out to the customer to apologize for upsetting her. This was an unfortunate misunderstanding as the letter carrier was unaware of the significance of the Red Dress hanging in the doorway. While she had been delivering the mail to this address for weeks, the carrier decided recently to leave a note saying it had been impeding her ability to deliver. This was not the formal process, she did not mean any disrespect and deeply regrets the situation now that she is fully aware of the significance of the Red Dress.
“We respect that the customer, and others, are bringing awareness to the Red Dress Movement and what it means to the Missing and Murdered Indigenous Women and Girls movement. We are also using this opportunity to inform our employees and ensure we approach these matters with proper sensitivity.”

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July 12, 2019 at 05:20AM

Divergent paths no longer: Trend-setting Canadian and U.S. interest rates likely to converge by year's end - The Globe and Mail

The Bank of Canada and the U.S. Federal Reserve have taken different paths over the past year and a half, with the Fed raising rates more aggressively than its Canadian counterpart.

That period is now over. Interest rates in the two countries are likely to move closer together over the coming months as U.S. growth slows and Canada picks up speed.

Policy-makers in both countries are sounding many of the same notes. The Bank of Canada’s monetary policy statement on Wednesday warned that trade conflicts are taking their toll on global trade. U.S. Federal Reserve chairman Jerome Powell made much the same point in his semi-annual testimony to Congress, also on Wednesday.

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To be sure, the near-simultaneous statements on both sides of the border also pointed to the near-term differences between the Canadian and U.S. perspectives. Mr. Powell’s remarks underlined the uncertainties facing the U.S. economy. His testimony strongly supported the case for the quarter-percentage point cut that markets are expecting at the Fed’s meeting at the end of this month.

In contrast, the Bank of Canada left its key rate unchanged and appeared in no rush to cut rates. It predicted a rebound in Canadian growth, from 1.3 per cent this year to 1.9 per cent in 2020 and 2 per cent in 2021 on the back of strong consumer spending, expanding exports and a modest recovery in housing activity.

Regardless of the difference in tone between the two central banks, the end results are likely to be similar from an interest-rate perspective. If futures markets are right, the key Fed funds rate in the United States and the policy rate in Canada are likely to converge by the end of this year, as the Fed cuts rates while the Bank of Canada stands pat.

At the moment, the key U.S. rate stands at 2.5 per cent and its Canadian counterpart at 1.75 per cent. But the futures market sees both the Fed funds rate and the Canadian policy rate hovering around 1.75 per cent by the end of December.

History shows that the two countries have rarely diverged for long on monetary policy. Outside of the late 1980s and early 1990s, when the Bank of Canada maintained significantly higher rates than the U.S., key rates in both countries have typically been similar.

Growth has also tended to follow the same ups and downs on both sides of the border. The past couple of years have been an exception, with a booming U.S. economy outpacing that of its Canadian neighbour.

However, the Bank of Canada expects that discrepancy to soon fade. It says U.S. growth will fall back to 1.7 per cent in 2020 and 1.6 per cent in 2021, slightly below its forecast for Canadian growth.

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This pattern would restore the close link between the two countries’ performance. Investors, though, may not want to assume the two countries will always move together. In some ways, their economies are now more different than they have ever been.

One key contrast is in household debt. U.S. consumers substantially reduced their debt loads after the 2008 financial crisis and collapse of the U.S. housing bubble. In contrast, Canadian households continued to borrow with abandon, driving their borrowing to unprecedented highs versus their disposable incomes and propelling home prices higher. Canadians are now spending record portions of their paycheques on debt payments.

Everything being equal, this suggests interest rate shifts are likely to have a greater effect in Canada than in the U.S. If trade tensions grow, and the global economy slows more than expected, the Bank of Canada may have little choice but to join the rate-cutting trend, despite concerns this might fan inflation by reducing the value of the loonie and increasing import prices.

“We continue to expect the Bank to cut interest rates in October,” Stephen Brown, senior Canada economist at Capital Economics, wrote in a note Wednesday. He expects a couple of additional rate cuts to follow.

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July 11, 2019 at 03:58AM