Stock Futures Mixed in Asia With S&P 500 at Record: Markets Wrap

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(Bloomberg) — Stocks in Asia looked set for a mixed start as investors parsed the latest developments in the trade conflict and kept an eye on Alibaba’s Singles’ Day for a gauge of consumer health in China.

Equity futures rose in Japan and Australia, while contracts dipped in Hong Kong. The S&P 500 eked out another record high on Friday, as Treasuries continued to sink — the 10-year yield ended the week at 1.94%. The U.S. Veterans Day on Monday means no Treasuries trading. U.S. President Donald Trump said trade talks with China are moving along “very nicely” and that Beijing wants a trade deal “much more than I do.” The offshore yuan was steady after five weeks of gains.

© Bloomberg China’s yuan posts a fifth week of gains in longest streak since February 2018

Data over the weekend showed Chinese factories are threatening to drag down prices around the world as producer prices dropped for a fourth month in October. Alibaba’s sales event kicked off with a bang, with 136 billion yuan ($19 billion) of purchases in less than five hours. The world’s biggest shopping event could help investors gauge how willing Chinese consumers are to spend as economic growth threatens to slip below 6% and the trade war drags on.

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An easing of global growth worries and signs of progress toward an interim trade deal have helped lift risk assets, with global equities rising for the past five weeks. But further short-term volatility should be expected, according to Shane Oliver, head of investment strategy at AMP Capital Investors Ltd.

“Equity valuations are OK, particularly against low bond yields, and global growth indicators are expected to improve by next year and monetary and fiscal policy are becoming more supportive,” he said. “All of which should support decent gains for share markets on a 6-12 month horizon.”

In Spain, voters went to the ballot box Sunday for the second time this year as the country strives to break a political logjam. The first poll after voting closed points to Prime Minister Pedro Sanchez’s Socialists falling short of an outright majority and the far-right Vox party gaining seats.

Saudi Aramco will allow investors to start bidding for shares starting on Nov. 17. The firm said it’ll provide the number and percentage of shares sold at a later stage, with book-building kicking off this week.

The U.K.’s sovereign credit rating was placed on negative outlook by Moody’s Investors Service, which said the country’s ability to set policy has weakened in the Brexit era along with its commitment to fiscal discipline.

Here are some key events coming up this week:

Earnings include Tencent, Nissan Motor, Japan Post Bank, Mitsubishi UFJ and DBS.New Zealand’s policy decision is due Wednesday, with market pricing tilting in favor of an interest-rate cut.Fed Chairman Jerome Powell addresses the Joint Economic Committee of Congress, in Washington Wednesday. Minneapolis Fed President Neel Kashkari speaks in La Crosse, Wisconsin.Thursday brings China retail sales and industrial production data.U.S. retail sales on Friday are forecast to rebound in October after unexpectedly falling the prior month. The health of American spending is key to extending the record-long expansion.

These are the main moves in markets:

Stocks

The S&P 500 added 0.3% on Friday.Futures on Japan’s Nikkei 225 advanced 0.3%.Hang Seng futures dipped 0.3%.Futures on Australia’s S&P/ASX 200 Index added 0.4%.

Bonds

The yield on 10-year Treasuries added three basis points to 1.94% on Friday.

Currencies

The yen was at 109.20 per dollar.The offshore yuan dipped 0.1% to 6.9907 per dollar.The euro bought $1.1025.

Commodities

West Texas Intermediate crude oil added 0.2% to $57.24 a barrel.Gold fell 0.7% to $1,459 an ounce.

To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, James Ludden

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