Dow rose 29, advancers over decliners 3-2 & NAZ went up 21. The MLP index lost 1+ to the 255s & the REIT index was little changed at 370. Junk bond funds were mixed & Treasuries fluctuated (more below). Oil is back at 56 & gold added 2 to 1347 (near 10 month highs).
AMJ (Alerian MLP Index tracking fund)
Stocks trading cautiously ahead of Fed minutes
European stocks were slightly higher, amid rising hopes the world's 2 largest economies could soon secure a trade deal to end a protracted dispute. The pan-European Stoxx 600 was up 0.5%, with most sectors & major bourses in positive territory. Europe's autos stocks, with their heavy exposure to China, led the gains, up more than 2%. Officials from the US & China launched a new round of negotiations yesterday, with a follow-up session of higher-level talks expected later in the week. Pres Trump said that he might extend the Mar 1 deadline for a deal, saying it was not a "magical date." Stateside, stocks were flat after the opening bell, as investors waited for news from the trade talks & clues on monetary policy. The Federal Reserve's Open Market Committee is expected to release minutes later today. In the UK, 3 lawmakers from Britain's ruling Conservative Party announced they had quit to join a new centrist group in Parliament. They issued a joint statement saying the government's handling of Brexit had been "disastrous." Prime Minister May is set to visit Brussels to meet European Commission Pres Jean-Claude Juncker later today. It comes as May continues with her bid to renegotiate her Brexit deal with the bloc, with less than 38 days to go before the country leaves the EU.
European markets edge higher amid earnings, US-China trade talks; Sainsbury shares dive 16%
US gov debt yields held steady as investors awaited the Federal Reserve's latest meeting minutes & monitored US-China trade deliberations. The yield on the benchmark 10-year Treasury note inched higher to 2.646%, while the yield on the 30-year Treasury bond hovered at 2.997%. The yield on the 2-year note slipped to 2.489% (bond yields move inversely to prices). US Chinese officials began a fresh set of trade discussions as the 2 sides work to end their prolonged dispute. While last week's deliberations ended in Beijing concluded without a deal, officials said progress was made on some contentious issues. Talks between high-level trade officials are expected to take place later in the week & will be led by US Trade Representative Robert Lighthizer, a vocal critic of what the US deems forced technology transfers & intellectual property theft by the Chinese. Pres Trump said yesterday that the Mar 2 deadline for the 2 nations to reach a deal was not a "magical date," hinting at an extension to the target date. Yields have declined in recent weeks as global growth concerns fueled interest in assets considered safer by US investors. The economic outlook doesn't look much better in Asia, where Chinese growth & consumer sentiment remain anemic while DC & Beijing haggle over tariffs & the existing trade balance.
Treasury yields little changed amid US-China trade talks; Fed minutes in focus
Not much for traders to do while they wait for the FOMC minutes later. The US-China talks continue to stumble along & the markets are waiting for a breakthrough. The Dow is back at 25.9K, less than 1K away from setting a new record. Meanwhile, negative investors are buying gold.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 56.09 | 0.00 | 0.0% |
| GC=F | Gold | 1,347.30 | +2.50 | +0.2% |
Stocks traded in a tight range ahead of the release of the minutes from the last Fed meeting in which policymakers removed explicit reference to future rate increases from its monetary-policy statement. Before the Jan meeting, the central bank had included that language in all of its statements since 2015. Trade talks continue between the US & China. Pres Trump said yesterday that talks with China were going well and suggested he was open
to pushing off the deadline to complete negotiations, saying Mar 1 was
not a "magical" date. In Europe, London's FTSE was up 0.2%, Germany's DAX added 0.4% & France's CAC rose 0.3%. In
Asian markets, China's Shanghai Composite added 0.2%, Hong
Kong's Hang Seng gained 1% & Japan's Nikkei rose 0.6%
to a 9-week high.
Stocks trading cautiously ahead of Fed minutes
A Chinese state-run newspaper claimed in an editorial published late yesterday that the US faces greater pressure to resolve its ongoing trade war with China because failed negotiations would likely have major consequences for stocks worldwide. Yesterday, the S&P 500 rose after Pres Trump again indicated the world's 2 largest economies might have more time
to find a way to avoid raising tariffs. The current deadline before
increased tariffs kick in is Mar 1 & the Chinese delegation is in DC. this week for trade negotiations. "[Trump's] words further
stoked the stock markets of the US, which reached the highest in two
months and so increased pressure on the Trump administration to close
the deal with China," the Global Times said. Trump has frequently cited the
US stock market's performance as a gauge of his success, although he
has been quiet on the subject when shares are not performing well. Citing unnamed leakers,
the Global Times editorial added that if both sides can't reach an
agreement & the Trump team "imposes more tariffs on Chinese products
while China responds with fiercer countermeasures," then that would "be a
catastrophic strike to global stock markets." "In terms of avoiding such blows, the Trump administration is probably
the most pressured," the Global Times claimed. "Thus in general, by the
end of the trade negotiations, China and the US have become more
psychologically equal."
China media says if the US slaps tariffs on China it will be ‘catastrophic’ for th…
European stocks were slightly higher, amid rising hopes the world's 2 largest economies could soon secure a trade deal to end a protracted dispute. The pan-European Stoxx 600 was up 0.5%, with most sectors & major bourses in positive territory. Europe's autos stocks, with their heavy exposure to China, led the gains, up more than 2%. Officials from the US & China launched a new round of negotiations yesterday, with a follow-up session of higher-level talks expected later in the week. Pres Trump said that he might extend the Mar 1 deadline for a deal, saying it was not a "magical date." Stateside, stocks were flat after the opening bell, as investors waited for news from the trade talks & clues on monetary policy. The Federal Reserve's Open Market Committee is expected to release minutes later today. In the UK, 3 lawmakers from Britain's ruling Conservative Party announced they had quit to join a new centrist group in Parliament. They issued a joint statement saying the government's handling of Brexit had been "disastrous." Prime Minister May is set to visit Brussels to meet European Commission Pres Jean-Claude Juncker later today. It comes as May continues with her bid to renegotiate her Brexit deal with the bloc, with less than 38 days to go before the country leaves the EU.
European markets edge higher amid earnings, US-China trade talks; Sainsbury shares dive 16%
US gov debt yields held steady as investors awaited the Federal Reserve's latest meeting minutes & monitored US-China trade deliberations. The yield on the benchmark 10-year Treasury note inched higher to 2.646%, while the yield on the 30-year Treasury bond hovered at 2.997%. The yield on the 2-year note slipped to 2.489% (bond yields move inversely to prices). US Chinese officials began a fresh set of trade discussions as the 2 sides work to end their prolonged dispute. While last week's deliberations ended in Beijing concluded without a deal, officials said progress was made on some contentious issues. Talks between high-level trade officials are expected to take place later in the week & will be led by US Trade Representative Robert Lighthizer, a vocal critic of what the US deems forced technology transfers & intellectual property theft by the Chinese. Pres Trump said yesterday that the Mar 2 deadline for the 2 nations to reach a deal was not a "magical date," hinting at an extension to the target date. Yields have declined in recent weeks as global growth concerns fueled interest in assets considered safer by US investors. The economic outlook doesn't look much better in Asia, where Chinese growth & consumer sentiment remain anemic while DC & Beijing haggle over tariffs & the existing trade balance.
Treasury yields little changed amid US-China trade talks; Fed minutes in focus
Not much for traders to do while they wait for the FOMC minutes later. The US-China talks continue to stumble along & the markets are waiting for a breakthrough. The Dow is back at 25.9K, less than 1K away from setting a new record. Meanwhile, negative investors are buying gold.
Dow Jones Industrials
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