European stocks erase gain
On Tuesday government bonds advanced as the Bank of Japan signaled it will maintain its current stimulus, while European stocks erased a gain as optimism around corporate earnings and the end of the U.S. shutdown began to ebb. Gold and oil rose.
Futures for the S&P 500 Index also reversed to trade lower and the greenback strengthened against the euro and pound in the wake of U.S. President Donald Trump’s first major move on foreign trade. Earlier in Asia, the MSCI Asia Pacific and Hong Kong’s Hang Seng indexes had posted fresh records. The yen rose, erasing an earlier drop when the BOJ damped speculation it’s close to reducing monetary stimulus.
Investors will closely watch how markets respond to Trump’s import tariffs. Any positive impact from his signing of a temporary government spending bill that ended a three-day partial shutdown appears to have faded, perhaps because the deal simply delayed tough decisions for a few weeks.
Earlier, investors scrutinized comments from BOJ Governor Haruhiko Kuroda that the central bank wasn’t in a position to consider exiting its current policy after the board voted 8-1 to keep interest rates and asset purchases at current levels.
The MSCI Emerging Markets Index advanced an eighth day, helped by stronger oil prices. West Texas crude futures climbed toward $64 a barrel, buoyed by forecasts for a record run of declines in U.S. crude stockpiles.
The Stoxx Europe 600 Index rose less than 0.05 percent as of 11:34 a.m. London time. The MSCI All-Country World Index increased 0.2 percent to the highest on record. The U.K.’s FTSE 100 Index rose less than 0.05 percent. Germany’s DAX Index jumped 0.5 percent to the highest on record. The MSCI Emerging Market Index increased 0.8 percent and the largest climb in more than a week. Futures on the S&P 500 Index decreased 0.1 percent.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.