Stocks Stall After Trade Optimism; Dollar Steady: Markets Wrap

Bloomberg.com — Stocks gains in Asia eased as initial enthusiasm following a U.S.-European Union agreement to avert a transatlantic trade war for now faded. Treasuries edged higher and the dollar steadied.

Japan’s Topix index and South Korea’s shares rose after President Donald Trump agreed with the European Commission chief to suspend new tariffs while continuing to negotiate over trade. But benchmarks turned lower in Australia, Hong Kong and China, and U.S. futures dropped with weak sales at Facebook wiping about 1 percent off Nasdaq futures. European equivalents pointed to a slightly firmer start to trading. Japanese 10-year government bond yields rose to the highest in a year and the yen strengthened amid renewed speculation the Bank of Japan is paving the way for a stimulus tweak.

Trump’s meeting with Jean-Claude Juncker came amid a raft of earnings from U.S. companies, some of which reflected the impact of recent trade threats from the White House. Facebook tumbled 20 percent plus in after-hours trading as revenue and user growth missed estimates and General Motors shares plunged after the carmaker cut its profit forecast on surging metals prices.

Elsewhere, West Texas crude ticked up above $69 a barrel as stockpiles decreased. Gold slipped and copper futures pushed higher.