Stocks Fluctuate, Treasuries Edge Up; Pound Slips: Markets Wrap

(Bloomberg) — European stocks edged higher on Wednesday while U.S. equity futures fluctuated and Asian shares were mixed. Bonds also nudged upward while the pound extended its decline.

The Index traded slightly higher as most national benchmarks in the region were in the green. Luxury TV and stereo maker Bang & Olufsen (LON:) plunged after issuing its fourth profit warning in a year. U.S. futures were little changed a day after the closed just one index point higher at a new record, amid positive U.S. factory and housing data. However FedEx Corp (NYSE:). plunged in after-market trading after cutting its profit forecast for the second straight quarter.

Asian equities were mixed, with shares falling in Tokyo but rising in Hong Kong and India. The slipped, extending a tumble from Tuesday on renewed concern that a no-deal Brexit is possible. The yuan was steady after China’s central bank injected liquidity into the financial system.

With global stocks around all-time highs and the U.S.-China trade accord announced Friday yet to be signed, traders are finding few reasons to bid prices higher. The outlook for America’s monetary policy remains dovish — two Federal Reserve policy makers reiterated that interest rates are on hold — yet the miserable results from FedEx were a reminder of the headwinds to growth.

“We are a little bit cautious going into 2020, not getting too carried away with the optimism that the equity markets are displaying right now,” said Susan Buckley, managing director of global liquid strategies at QIC Ltd. “We are still looking at an outlook of slow growth in 2020.”

Elsewhere, the impeachment inquiry of President Donald Trump comes to a head today, with the House of Representatives set to vote on two articles that will likely set up a January trial in the Senate, where he’s expected to be acquitted.

Meanwhile, West Texas pulled back after rising above $61 a barrel for the first time in three months. languished below $7,000.

Here are some key events to watch for this week:

• Policy decisions are due Thursday from the Bank of Japan and the Bank of England.
• Revised U.S. GDP data are due Friday.
• Friday also brings quadruple witching in the U.S., the simultaneous expiration date of stock index futures, stock index options, stock options and single stock futures. Expect elevated trading volume, particularly in the last hour of trading.

These are the main moves in markets:

Stocks

• Futures on the Index where little changed at as of 8:21 a.m. London time.
• The Index rose 0.1%.
• The U.K.’s added 0.2%.
• The MSCI Asia Pacific Index dipped 0.1%.

Currencies

• The Bloomberg Dollar Spot Index increased 0.1%.
• The decreased 0.1% to $1.1135.
• The British pound fell 0.1% to $1.3112.
• The Japanese was little changed at 109.43 per dollar.

Bonds

• The yield on Treasuries declined two basis points to 1.86%.
• Germany’s yield dipped one basis point to -0.30%.
• Britain’s yield decreased one basis point to 0.755%.

Commodities

• West Texas Intermediate crude dipped 0.6% to $60.55 a barrel.
• climbed 0.1% to $1,477.79 an ounce.

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