Stocks Gain With Yuan as Trump Delays Tariff Hike: Markets Wrap

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Stocks Gain With Yuan as Trump Delays Tariff Hike: Markets Wrap(Bloomberg) -- U.S. equity futures rose along with Asian stocks and the yuan after President Donald Trump said he will delay the next tariff increase on China by about two weeks. The yen and Treasuries declined.Shares rose in Tokyo and Sydney on the boost to sentiment as investors awaited a potentially pivotal European Central Bank policy meeting. Earlier, the S&P 500 climbed to the highest since July as tech and healthcare shares gained, with the recent trend of rotation to value from momentum stocks easing. Oil pared overnight losses stemming from signs there could be a thaw in U.S-Iran relations following John Bolton’s departure.President Donald Trump said he was moving back a 5% increase in tariffs on Chinese goods by two weeks. China earlier on Wednesday announced a range of U.S. goods to be exempted from 25% extra tariffs put in place last year, as the government seeks to ease the impact from the trade war.“The quantum and nature of the changes mean they are more symbolic than substantial, but were still well received by investors,” said Michael McCarthy, chief market strategist at CMC Markets Plc in Sydney.Meantime, focus will turn on Thursday to the European Central Bank’s policy meeting, where it is widely expected to lower interest rates and potentially offer more stimulus. With the Fed meeting next week, strong monetary easing is not a given, with some dialing back their expectations of accommodation and bond traders pulling back from the more bullish sentiment of August. President Donald Trump earlier urged the Fed to cut interest rates to “zero, or less,” in a tweet.Here are some key events coming up this week:The ECB policy meeting Thursday is widely expected to see a cut to interest rates and a review of all options, including QE. Policy makers will also publish forecasts for growth and inflation. ECB President Mario Draghi will hold a press conference.U.S. data for August is due on producer prices Wednesday, and CPI Thursday.These are the main moves in markets:StocksJapan’s Topix index rose 0.5% as of 9:17 a.m. in Tokyo.Futures on the S&P 500 Index gained 0.5%. The underlying gauge rose 0.7% Wednesday.Australia’s S&P/ASX 200 Index rose 0.7%.CurrenciesThe yen fell 0.1% to 108.02 per dollar.The offshore yuan rose 0.3% to 7.0908 per dollar.The Bloomberg Dollar Spot Index was little changed.The euro bought $1.1011.BondsThe yield on 10-year Treasuries added two basis points to 1.76%.Australia’s 10-year yield rose two basis points to 1.16%.CommoditiesWest Texas Intermediate crude added 0.7% to $56.12 a barrel.Gold fell 0.3% to $1,492.98 an ounce.(A previous version corrected a bullet in prices section on South Korean stocks, which are closed for holiday Thursday.)To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editor responsible for this story: Christopher Anstey at canstey@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.


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