A stronger mood was set on Friday amid new tensions between the US and China and little progress on a federal spending deal in Washington. The dollar rose on the first day of five.
Futures S&P 500 stabilized after the index closed at an all-time high on Thursday as Congress rushed to complete a pandemic relief deal. The US is preparing to do so blacklist Semiconductor Manufacturing International Corp. and dozens of other Chinese companies, Reuters reported, citing people familiar with the matter. US equities may also be more volatile than usual, with options and futures on indices and equities expire.
The dollar rose and benefited from declines in another group of 10 currencies. In Europe, miners and telecommunications companies made gains on the Stoxx 600 index as retail and travel companies fell. The pound and the euro fell when both sides in talks on Brexit warned that progress had been made. another problem with only a few hours to find a deal.
With the clock ticking to renew aid to the pandemic, Washington leaders are under pressure to resolve their differences after months of stagnation amid signs of a faltering economic recovery. A U.S. bipartisan stimulus deal “appears to be close,” Senate Majority Leader Mitch McConnell said, but it will likely require work over the weekend to get Congress.
The stimulus package “should be a sufficient bridge,” Steven Wieting, global investment strategist at Citigroup Private Bank, told Bloomberg TV. “That along with at this stage a preparation for this Covid emergency and the fact that vaccines are advanced by the middle of the year, it would certainly be enough to make us go through this period of weakness.”
Elsewhere, copper topped $ 8,000 a tonne for the first time in more than seven years due to rising demand and supply bottlenecks.
These are the main movements in the markets:
Stocks
- S&P 500 index futures rose 0.1% as of 7:02 a.m. New York time.
- The Stoxx Europe 600 index rose 0.1%.
- The MSCI Asia Pacific index sank 0.4%.
- The MSCI Emerging Markets Index fell 0.3%.
Coins
- The Spot Bloomberg Dollar index rose 0.1%.
- The euro fell 0.1% to $ 1,2254.
- The British pound sank 0.4% to $ 1.3526.
- The land yuan weakened 0.1% to $ 6,537.
- The Japanese yen weakened 0.3% to 103.38 per dollar.
Good
- The 10-year Treasury yield gained a basis point to 0.94%.
- The two-year Treasury yield remains unchanged at 0.12%.
- Germany’s ten-year yield rose one basis point to -0.56%.
- Japan’s ten-year yield fell less than a basis point to 0.01%.
- The UK’s ten-year yield sank by two basis points to 0.266%.
Commodities
- West Texas crude oil fell 0.1% to $ 48.31 a barrel.
- Brent crude fell 0.3% to $ 51.36 a barrel.
- Gold traded slightly at $ 1,885.37 an ounce.