Stocks Mixed Before G-20 Meet; Treasuries Steady: Markets Wrap - Ester Holdings

Stocks Mixed Before G-20 Meet; Treasuries Steady: Markets Wrap

Bloomberg.com — Asian stocks looked set to cap the month in mixed fashion and U.S. and European futures pointed lower as investors await a crucial meeting between the U.S. and Chinese presidents with the course of the trade war at stake. Benchmark Treasury yields held near its lowest since September.

Shares gained in Tokyo, slipped in Seoul and slumped in Sydney. The S&P 500’s rally faded late in the day on Thursday as doubts remain about prospects for Presidents Donald Trump and Xi Jinping to agree to a thaw in relations. The 10-year Treasury yield was steady after briefly dipping below 3 percent Thursday. Data showing China’s economy that remains in a weak patch had little impact, with Shanghai and Hong Kong stocks rising.

“I wouldn’t be surprised at the end of this weekend if the U.S. and China didn’t announce a concord that basically sat down a path to help resolve the trade frictions,” Scott Minerd, chief investment officer at Guggenheim Partners, told Bloomberg TV in Tokyo. “I don’t think that out of the meeting there’s going to come much substance, but there will be a sort of set of principles that will be established to start the process of bringing an end to the trade war.” His firm manages about $265 billion.

Trump said he’s very close to “doing something” with China. American and Chinese officials have been working for weeks on the contours of a possible deal and those discussions have centered on the possibility of a truce in which the U.S. would delay ramping up tariffs on China in exchange for Chinese concessions, according to people familiar with the matter. The latest twist in Robert Mueller’s investigation threatened to distract Trump after his ex-lawyer Michael Cohen pleaded guilty to new crimes related to business dealings in Russia.

The first official gauge of China’s economy in November showed manufacturing activity continued to worsen, indicating the authorities will need to keep using stimulus measures as economic growth slows. Overnight in the U.S., minutes from the Federal Reserve’s November policy meeting showed the central bank preparing for a more flexible path in 2019.

Elsewhere, Korea’s won held on to this week’s losses as Friday’s interest rate increase did little to assuage concern surrounding the economy. The pound remained under pressure after U.K. Prime Minister Theresa May warned of the prospect of a “no deal” Brexit.

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