Dollar, Yields Tick Higher; Stocks Lack Direction: Markets Wrap

Bloomberg.com — Stocks outside of Japan traded mixed Tuesday as the dollar inched higher alongside Treasury yields. The yen retreated and U.S. equity index futures advanced.

Japan’s shares outperformed Asian equities as the yen declined. Hong Kong and Chinese shares retreated, while Australia advanced amid thin volumes in most of the region. European futures signaled a muted open. The dollar edged up from close to a two-week low ahead of a U.S. Treasury currency-manipulation report expected this week. Oil ticked higher amid tensions between Saudi Arabia and the U.S. over the disappearance of a prominent journalist, while gold held gains.

Traders are grappling with continuing U.S.-China trade war rhetoric and geopolitical strains, while trying to gauge the direction of the American economy and third-quarter earnings results. Investors are looking for any signal from corporates hinting of a slowdown or stronger growth that could affect the pace of Federal Reserve rate hikes. Bank of America Corp. dropped in New York Monday after posting results, while earnings from Goldman Sachs Group Inc. are due Tuesday.

Elsewhere, the New Zealand dollar jumped after inflation beat all economist estimates. The Turkish lira was set for an eighth day of gains after the country released U.S. pastor Andrew Brunson on Friday.