Stocks Gain in Europe; Dollar Strengthens With Oil
November 12, 2018 @ 12:08 UTC
Stocks climbed in Europe after dropping across most of Asia as investors weighed the outlook for equities after a roller-coaster few weeks. The dollar strengthened, oil snapped a 10-day sell-off, and the pound slid as the U.K.’s prime minister fought to keep her Brexit divorce plan alive.
The Stoxx Europe 600 Index advanced, led by commodities producers, after shares drifted for much of the Asian day, with the region’s main gauge lower overall. Equities in Japan and Hong Kong finished in a tight range, while those in China jumped. Futures on U.S. stock indexes rose following a weak session on Friday, when large-cap tech shares dragged the Nasdaq 100 Index down 1.7 percent.
The dollar climbed versus most of its major peers and crude oil advanced as OPEC and its allies started laying the groundwork to cut supply in 2019. The pound declined for a third day as pressure built on Theresa May to ditch her Brexit plan or face a catastrophic defeat in Parliament. Yields on euro-zone bonds were steady, as Treasuries didn’t trade, thanks to a U.S. holiday.
The Stoxx Europe 600 Index gained 0.3 percent as of 8:14 a.m. London time. Futures on the S&P 500 Index climbed 0.2 percent. Italy’s FTSE MIB Index was little changed. The U.K.’s FTSE 100 Index jumped 0.7 percent to the highest in almost five weeks. The MSCI All-Country World Index fell 0.2 percent. The Bloomberg Dollar Spot Index climbed 0.5 percent to the highest in 18 months. The euro dipped 0.7 percent to the weakest in almost 17 months on the largest decrease in more than six weeks. The British pound decreased 0.9 percent to $1.2859, the weakest in more than a week on the biggest dip in more than seven weeks.
West Texas Intermediate crude advanced 1.6 percent to $61.18 a barrel, the first advance in more than two weeks and the largest gain in six weeks. Brent crude advanced 2.2 percent to $71.74 a barrel, the first advance in a week and the biggest gain in six weeks.
Stocks Gain in Europe; Dollar Strengthens With Oil, Bloomberg, Nov 12