Closing June 10
In European Equity Markets the pan-European Stoxx 600 edged 0.2% higher during the session, basic resources leading gains with a 1.2% rise while utilities fell 0.7%. Fiat Chrysler (FCA) and Renault are seeking ways to resuscitate their collapsed merger and secure the approval of Renault’s alliance partner Nissan. FCA shares jumped 2%, also bolstered after self-driving car software startup Aurora said Sunday it would partner with the company to build autonomous platforms for commercial vehicles. Renault climbed 2.3.
In Currency Markets the U.S. dollar gained on Monday after the United States and Mexico reached a deal to avoid tariffs, while the euro faltered after sources said ECB policymakers were open to cutting interest rates should economic growth slow. On Friday, Mexico agreed to rapidly expand an asylum program and deploy security forces to stem the flow of illegal Central American migrants. The euro fell after two sources familiar with the ECB’s policy discussions said on Sunday that a rate cut was firmly in play if the bloc’s economy stagnates again after expanding by 0.4% in the first quarter.
In Commodities Markets oil prices were steady in volatile trading on Monday as major producers Saudi Arabia and Russia had yet to agree on extending an output-cutting deal and U.S.-China trade tensions continued to threaten demand for crude. Brent crude futures rose 2 cents to $63.31 a barrel. U.S. West Texas Intermediate (WTI) crude gained 23 cents to $54.22 a barrel. Saudi Energy Minister Khalid al-Falih said that Russia was the only oil exporter still undecided on the need to extend the output deal agreed by top producers.
In US Equity Markets indices climbed on Monday, as investors were relieved after the United States abandoned its plans to impose tariffs on Mexican goods. The S&P 500 was up 0.75%, at 2,894.92 and the Nasdaq Composite rose 1.46%, at 7,854.98. Technology stocks rose 1.5% and provided the biggest boost among the nine major S&P sectors trading higher. Kraft Heinz Co gained 5.3% after the packaged food company said the numbers it restated last month were accurate following completion of an internal investigation.
In Bond Markets U.S. government bond yields rose on Monday, suggesting the market was optimistic about the U.S.-Mexico trade and migration deal signed on Friday and had brushed off President Donald Trump’s subsequent threats to impose further tariffs on Mexico. The largest gains were at the long end of the Treasury yield curve, with the benchmark 10-year yield up 5.2 basis points to 2.136% and the 30-year yield up 5.2 basis points to 2.623%. That steepened the yield curve, measured as the spread between the two- and 10-year yields, to 24.5 basis points.
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