Stocks Mixed as Dollar Slips; Oil Near 2014 High

Most Asian stocks dipped in a holiday-hit trading session Tuesday, with the dollar stalling near a five-month high and U.S. Treasuries little changed. Crude oil steadied around its highest level since 2014.

While the S&P 500 Index climbed overnight thanks to easing trade tensions, that optimism appeared to have played out by the time Asian trading began Tuesday. Shares in Japan and Australia fell alongside those in China, even as companies selling baby products saw gains after news the country plans to abandon its policy on birth limits. European futures pointed to a mixed open, while the euro drifted and Italian 10-year bond yields ticked lower.

“Markets are going through a bumpy ride,” Bank of Singapore Investment Strategist James Cheo said on Bloomberg Television. “This trade truce is still in the early days. It’s really a ceasefire, it’s not a peace treaty as yet. The implementation details are still unclear. There is still some caution among Asian investors.”

Outside of trade, plenty of other topics stand ready to capture investors’ attention. Along with the minutes of the Federal Reserve’s latest policy meeting and those of the European Central Bank, there is a slew of debt sales from the U.S. On the geopolitical front, U.S. President Donald Trump meets South Korea President Moon Jae-in in Washington to coordinate their approach to North Korea, while Brexit negotiations are ongoing.

Elsewhere, pressure on emerging-market currencies eased as the dollar stalled, with the Malaysian ringgit and the Indonesian rupiah heading up. Hong Kong and South Korean markets were shut for Buddha’s Birthday.

These are some key events to watch this week:

Brexit negotiations resume in Brussels Tuesday, and South Korea’s president visits Washington to discuss North Korea.

Also Tuesday, Facebook Chairman and CEO Mark Zuckerberg is to be questioned by the European Parliament on his company’s use of personal data.

The Federal Reserve releases minutes of the central bank’s May 1-2 meeting on Wednesday; U.S. new home sale also released as are euro-area and Japan PMIs.

Thursday sees the Bank of England Markets Forum at Bloomberg London. Speakers include BOE Governor Mark Carney and New York Fed President William Dudley.

At the St. Petersburg Forum Friday, Russian President Vladimir Putin and French President Emmanuel Macron, IMF Managing Director Christine Lagarde, and Japan Prime Minister Shinzo Abe participate on a panel moderated by Bloomberg News Editor-in-Chief John Micklethwait.

Also Friday, European Union finance ministers discuss the latest on Brexit talks, in Brussels.

These are the main moves in markets:

Stocks

Topix index lost 0.2 percent at the close in Tokyo.

Australia’s S&P/ASX 200 Index fell 0.7 percent.

Shanghai Composite Index fell 0.6 percent.

S&P 500 Index futures were steady. The S&P 500 rose 0.7 percent Monday.

FTSE 100 futures fell 0.1 percent.

Currencies

The Bloomberg Dollar Spot Index fell less than 0.1 percent.

The euro was little changed at $1.1786.

The British pound was at $1.3430, near the low for the year reached Monday.

The Japanese yen rose 0.1 percent to 110.94 per dollar, still holding around its weakest since January.

Bonds

The yield on 10-year Treasuries fell less than one basis point to 3.0541 percent.

Australia’s 10-year bond yield fell three basis points to 2.86 percent.

Germany’s 10-year bund yield was little changed at 0.53 percent.

Commodities

West Texas Intermediate crude gained 0.4 percent to $72.54 a barrel, climbing for a second day.

Gold lost 0.1 percent to $1,291.42 an ounce.

LME copper rose 0.3 percent to $6,896 a metric ton.

Source: Bloomberg