European stocks joined a rally across most Asian equities following three days of losses, though trading volumes were once again depressed. Havens including gold, the yen and bonds retreated even as the likes of Bridgewater Associates’ Ray Dalio said he was reducing risk.
The Stoxx Europe 600 Index rebounded from the lowest in more than a week as auto makers and miners led gains across every sector. U.S. equity-index futures were also in the green after the S&P 500 Index halted a two-day decline on Monday. European government bond yields followed Treasuries higher, while the Bloomberg dollar index tried to end a two-day slide. Crude advanced before U.S. government data forecast to show stockpiles fell.
Investors seem to be getting over some of the sensitivity that characterized the past few days following political turmoil in Washington, fresh terrorist attacks in Europe and ongoing tension between the U.S. and North Korea. Nonetheless Dalio, the billionaire founder of the world’s largest hedge fund, said he’s “tactically reducing” risk because he’s concerned about growing internal and external conflict “leading to impaired government efficiency” in the U.S., according to a LinkedIn post Monday.
With little in the way of top-tier economic data out this week, markets are set to focus next on the annual conference of global central bankers hosted by the Kansas City Federal Reserve Bank at Jackson Hole, Wyoming. It starts on Thursday.
Terminal subscribers can read more on our Markets Live blog.
Among other key events looming this week:
Amazon.com Inc.’s bid for Whole Foods Market Inc. faces a shareholder vote on Wednesday.
Combined sales of new (data Wednesday) and previously owned (Thursday) U.S. homes probably edged up in July from the prior month, indicating a still robust real estate market held in check by rising property prices, economists forecast.
A verdict in the graft trial of Samsung Group heir Jay Y. Lee is due Friday.
Botswana, Hungary, Indonesia, Kazakhstan and Tunisia set monetary policy.
Here are the main moves in markets:
Japan’s Topix index fluctuated before ending the local session less than 0.1 percent higher, while the Kospi index gained 0.4 percent as did Australia’s main gauge.
Hong Kong’s Hang Seng Index rose 1.1 percent, outperforming other equity markets in Asia, on strong earning results.
The Japanese yen fell 0.4 percent to 109.37 per dollar.
The Stoxx Europe 600 Index increased 0.5 percent as of 8:27 a.m. in London.
The U.K.’s FTSE 100 Index gained 0.6 percent.
Germany’s DAX Index rose 0.7 percent.
Futures on the S&P 500 Index climbed 0.2 percent, the biggest increase in more than a week on a closing basis.
The Bloomberg Dollar Spot Index increased 0.1 percent.
The euro dipped 0.2 percent to $1.1792.
The British pound declined 0.2 percent to $1.2869, the largest fall in a week.
The yield on 10-year Treasuries gained two basis points to 2.20 percent.
Germany’s 10-year yield climbed one basis point to 0.41 percent.
Britain’s 10-year yield increased one basis point to 1.085 percent.
West Texas Intermediate crude gained 0.7 percent to $47.70 a barrel.
Gold fell 0.5 percent to $1,285.00 an ounce, the largest fall in a week.