After a week of unhealthy clenching amid flared tensions between the United States and North Korea, futures are decidedly back to risk ON after comments over the weekend from CIA director Mike Pompeo, who said there was no “imminent threat’ of nuclear war with North Korea.
Dow futures are currently indicating +100, S&P 500 +13.50 and Nasdaq +33.
Shares in Europe and Asia sprung back to life in overnight trade, with the Stoxx Europe 600 headed for its first gain in four trading sessions, and Japanese equities kicked ass after traders returned from a holiday.
While Eurozone bonds followed Treasuries lower to satisfy insatiable cravings for risk, Bitcoin surged past $4,000, kicking haters down mineshafts.
Here are events to pay attention to this week via Bloomberg
- A crowded U.S. data docket will give some indication of whether second-half GDP will outperform the first half. July retail sales are expected to rise from June, while housing starts and industrial production may be muted.
- On Wednesday, the Federal Open Market Committee will issue minutes from a July policy meeting that may hold clues on the next rate hike. The same day, Euro-area second-quarter GDP data is due.
- Chinese tech titans Tencent and Alibaba are among companies reporting this week. After rising 73 percent in 2017, Alibaba shares trade at a multiple of 64 times earnings. Tencent is trading at 54 times profit after a 64 percent jump.
- Russia’s factory output growth probably dipped to 3.3% in July year-on-year from 3.5% in June. The data is due in the early part of the week.
And here are the main moves in markets:
Stocks
- The Stoxx Europe 600 Index gained 0.8 percent as of 8:02 a.m. in New York, the largest rise in more than a week.
- The MSCI All-Country World Index increased 0.2 percent, the first advance in a week on a closing basis.
- The U.K.’s FTSE 100 Index jumped 0.6 percent, the largest climb in more than a week.
- Germany’s DAX Index gained 1 percent, the biggest rise in more than a week.
- Futures on the S&P 500 Index jumped 0.5 percent, the largest advance in almost four weeks.
Currencies
- The euro dipped 0.2 percent to $1.1798.
- The Bloomberg Dollar Spot Index gained 0.2 percent, the largest rise in more than a week.
- The British pound fell 0.3 percent to $1.2972, the weakest in more than a month.
Bonds
- The yield on 10-year Treasuries increased three basis points to 2.22 percent.
- Germany’s 10-year yield rose four basis points to 0.42 percent.
- Britain’s 10-year yield gained three basis points to 1.09 percent.
Commodities
- Gold declined 0.5 percent to $1,282.42 an ounce, the first retreat in a week.
- West Texas Intermediate crude declined 0.6 percent to $48.55 a barrel, the lowest in almost three weeks.
Asia
- Japan’s Topix index finished 1.1 percent lower. South Korea’s Kospi index advanced 0.6 percent. Australia’s S&P/ASX 200 Index rose 0.7 percent. In Hong Kong, the Hang Seng Index gained 1.4 percent, while the Shanghai Composite Index rose 0.9 percent.
- The Japanese yen declined 0.4 percent to 109.58 per dollar, the first retreat in a week.
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