Stocks rise on speculation trade threat overstated
Bloomberg|
Mar 06, 2018, 09.42 AM IST
NEW YORK: US stocks rose and Treasuries fell as investors speculated that President Donald Trump’s tough tariff talk won’t translate into the most severe protectionist policies.
Dow Jones Industrial Average was trading 208.36 points up (0.85 per cent) at 24,746.42 at 23.15 IST on Monday.
The S&P 500 Index turned higher, advancing for a second day, after hedge fund billionaire Ray Dalio called Trump’s threat of a trade war “political show” and House Speaker Paul Ryan urged the president to back down from tariffs on steel and aluminum. Ten-year Treasury yields also reversed an earlier decline to edge higher. The greenback rose against most peers with the Canadian dollar leading losers. West Texas crude advanced to around $62 a barrel.
In Europe, the broadest measure of the region’s equities halted a fourday slide after a major breakthrough on the path to a German government. Italy’s stocks and bonds were the standout losers as anti-establishment political groups surged in Sunday’s election.
“The positive story today is the lack of anything bad happening,” Kevin Caron, a senior portfolio manager as Washington Crossing Advisors, said by phone. “The bad news would have been if [Trump] announced more tariffs, or if there was some kind of reciprocal action from another country.”
The Italian election result and Germany’s move toward a coalition kick off a busy week for macro events. Both the Bank of Japan and European Central Bank will meet to decide on interest rate policy, while China hosts its National People’s Congress. Overshadowing it all, however, will be the next developments on global trade after US President Donald Trump riled markets with his proposed tariffs last week. America won’t lower duties on steel and aluminum from Mexico and Canada unless the two countries agree to a revamped Nafta, he said in a tweet on Monday.
Elsewhere, West Texas oil advanced as geopolitical risk resurfaced, with a halt at Libya’s biggest crude field sparking speculation that supply will tighten and help reduce a global glut. Shanghai stocks bucked regional weakness as China kept its 2018 growth target of around 6.5 per cent.
Dow Jones Industrial Average was trading 208.36 points up (0.85 per cent) at 24,746.42 at 23.15 IST on Monday.
The S&P 500 Index turned higher, advancing for a second day, after hedge fund billionaire Ray Dalio called Trump’s threat of a trade war “political show” and House Speaker Paul Ryan urged the president to back down from tariffs on steel and aluminum. Ten-year Treasury yields also reversed an earlier decline to edge higher. The greenback rose against most peers with the Canadian dollar leading losers. West Texas crude advanced to around $62 a barrel.
In Europe, the broadest measure of the region’s equities halted a fourday slide after a major breakthrough on the path to a German government. Italy’s stocks and bonds were the standout losers as anti-establishment political groups surged in Sunday’s election.
“The positive story today is the lack of anything bad happening,” Kevin Caron, a senior portfolio manager as Washington Crossing Advisors, said by phone. “The bad news would have been if [Trump] announced more tariffs, or if there was some kind of reciprocal action from another country.”
The Italian election result and Germany’s move toward a coalition kick off a busy week for macro events. Both the Bank of Japan and European Central Bank will meet to decide on interest rate policy, while China hosts its National People’s Congress. Overshadowing it all, however, will be the next developments on global trade after US President Donald Trump riled markets with his proposed tariffs last week. America won’t lower duties on steel and aluminum from Mexico and Canada unless the two countries agree to a revamped Nafta, he said in a tweet on Monday.
Elsewhere, West Texas oil advanced as geopolitical risk resurfaced, with a halt at Libya’s biggest crude field sparking speculation that supply will tighten and help reduce a global glut. Shanghai stocks bucked regional weakness as China kept its 2018 growth target of around 6.5 per cent.
