European stocks deviated after a rebound in Asian equities as investors struggled to rebuild their confidence amid a confused Italian political outlook and an uncertain commercial image. The dollar fell to the downside while the euro rose as Italian bond yields declined.
The Stoxx Europe 600 Index had an early gain despite a more optimistic mood in Asia. The MSCI Asia Pacific Index rebounded after touching its lowest level since February on Wednesday. Hong Kong and China's shares outperformed China's official factory indicator, which underlined robust growth despite the debt brake and trade tensions. US yields UU At 10 years they hovered around 2.85 percent.
In the midst of political and commercial turmoil, the next focus for traders could be the US labor report on Friday, the last before the Federal Reserve meeting next month, when rates are expected to rise. interest for the seventh time since the end of 2015. Morgan Stanley Chief Executive James Gorman said that the Fed is unlikely to be deterred from pursuing its monetary tightening path as a result of recent volatility in the financial markets.
"We're going to be filled with tremendous uncertainty over the course of the summer," David Ader, chief macro strategist at Informa Financial Intelligence, told Bloomberg Television. "I do not see that at this moment we have a big directional play, I see a lot of uncertainty, which results in a lot of volatility."
Elsewhere, the Indonesian Rupee led a broader rebound in emerging market currencies after Bank Indonesia raised the benchmark interest rate for the second time in less than two weeks on Wednesday and marked more increases to offset a mbadive sale of currencies and bonds.
Terminal users can read more on the Bloomberg & # 39; s Markets Live blog.
Here are some key events to consider this week:
- The US employment report for May expires on Friday. It is the last before the June meeting of the Federal Reserve.
- Automakers report US May sales The same day.
- Also on Friday: some shares on land join the global indexes of MSCI Inc.
- On Saturday, US Secretary of Commerce Wilbur Ross will travel to Beijing to talk with Vice Premier Liu He on issues as ZTE Corp. and the trade.
These are the main movements in the markets:
- The Stoxx Europe 600 index rose 0.1 percent from 8:18 am, London time.
- The MSCI World index of developed countries increased 0.3 percent.
- The MSCI Asia Pacific index gained 0.8 percent, the biggest gain in nearly three weeks.
- Japan's Nikkei 225 Stock Average won 0.8 percent, the biggest gain in nearly three weeks.
- The MSCI Emerging Market index rose 0.8 percent, the biggest gain in three weeks.
- The FTSE 100 index of the United Kingdom gained 0.3 percent.
- Futures in the The S & P 500 Index decreased 0.1 percent.
- The Bloomberg Dollar Spot Index fell 0.2 percent to the smallest in a week.
- The euro rose 0.2 percent to $ 1.1688, the strongest in a week.
- The British pound rose 0.2 percent to $ 1.3314, the strongest in a week.
- The Japanese yen gained 0.3 percent to 108.63 per dollar, the strongest in almost six weeks.
- The yield on 10-year Treasuries increased one basis point to 2.86 percent.
- Germany's 10-year yield fell less than one basis point to 0.37 percent.
- Britain's 10-year yield rose one basis point to 1,257 percent.
- Intermediate crude from West Texas fell 0.3 percent to $ 67.98 per barrel.
- Gold rose 0.3 percent to $ 1,305.14 an ounce, the highest in more than two weeks in the biggest advance in a week.
– With the badistance of Samuel Potter and Randall Jensen