Stocks in Europe slipped, failing to follow Asian peers higher amid conflicting reports over progress on trade talks between the world’s largest economies. The dollar reversed a decline and Treasury yields edged lower after reaching the highest level since 2011.
The euro retreated and Italian 10-year bond yields jumped to the highest since October amid uncertainty over the Five Star Movement-League coalition’s policy platform as they attempt to form a government. Risk sentiment was dampened earlier after Chinese state media described reports that it would attempt to slash its trade surplus as “nonexistent.”
Brent crude edged back toward the $80 a barrel it reached on Thursday amid Middle East tensions and signs that global stockpiles continue to decrease. Gold extended a retreat after breaking below $1,300 an ounce earlier this week. Investors are closely watching progress on the latest
Investors are keeping an eye on China-U.S. trade talks for signs of a breakthrough that could reignite a recent rally in global equities, while factoring in oil prices at a four-year high and a 10-year Treasury yield now firmly above 3%. Politics in peripheral Europe are also back in the spotlight after Italy’s populist leaders sealed a coalition agreement and a plan for reforms seen as a challenge to the European Union establishment.
The Turkish lira weakened to a fresh record low as emerging market currencies headed for their biggest weekly slump since November 2016.
This article provided by NewsEdge.