Investors digest warning on impact of protectionism on growth

U.S. equity futures struggled for traction on Monday while European stocks pared a drop as investors digested warnings from the world’s financial leaders about the impact of protectionism on growth. Japan’s yen rose and government bonds slid amid speculation over central bank stimulus.

Futures on the Dow and S&P 500 erased declines to trade little changed while contracts for the Nasdaq pointed to a slightly weaker open. Treasuries and the dollar were steady. The Stoxx Europe 600 Index edged lower after sudden changes in leadership at Fiat Chrysler hit carmakers, while travel companies also declined after Ryanair posted a 20 percent decline in first-quarter profit. European bonds were mixed.

Japanese 10-year government bonds plunged, sending the yield up the most in almost two years, while the yen rose on reports of possible changes to the nation’s ultra-loose monetary policy. That spurred the central bank to offer to buy an unlimited amount of securities in a fixed-rate operation. The yuan slipped.

The world’s finance chiefs over the weekend said global growth remains robust and many emerging-market countries are better prepared to face crises, but risks to the world economy have increased. Also rattling investors, Trump took issue with the yuan’s six-week slide to the weakest level in more than year, raising concern that the U.S.-China trade war is now spilling over into currency markets.

The Stoxx Europe 600 Index fell 0.1 percent. Futures on the S&P 500 Index advanced less than 0.05 percent. The MSCI All-Country World Index declined less than 0.05 percent. The MSCI Emerging Market Index decreased less than 0.05 percent.

West Texas Intermediate crude gained 1 percent to $68.94 a barrel, hitting the highest in more than a week. LME copper climbed 0.9 percent to $6,200.00 per metric ton, the highest in more than a week. Gold gained 0.2 percent to $1,231.61 an ounce, the highest in a week.

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.