Stocks drift as the dollar rises; iron ore is growing

U.S. equity futures and European stocks struggled for direction on Wednesday amid mixed reports from corporate heavyweights and after a drop in German factory orders added to signs that the euro area’s economy is losing momentum. The dollar extended its advance as Treasuries edged higher. Futures on the S&P 500 and Dow Jones drifted lower, while those on the Nasdaq eked out a gain. The Stoxx Europe 600 edged higher, heading for a seventh day of gains as technology stocks rallied on some upbeat company reports. Car makers were among the laggards after Daimler AG’s cautious tone reignited concern about global trade. Bonds across the region were range bound, though Italian notes slipped as the country sold new debt.

Asia saw another muted session as the Lunar New Year holiday continued. Australia’s dollar tumbled after the central bank chief signaled a shift to a neutral stance on policy. Iron ore rallied toward $90 a metric ton after Brazil’s Vale SA declared force majeure on some contracts, raising the prospect of a deficit of the commodity this year. Global equities are close to levels not seen since November, in part spurred by the Federal Reserve’s tilt toward a neutral policy stance. Further clues on what 2019 holds may come Wednesday from Chairman Jerome Powell’s first public comments following the January meeting and interest-rate decision.

The Stoxx Europe 600 Index increased 0.1 percent as of 7:36 a.m. New York time, hitting the highest in almost three months with its seventh consecutive advance. Futures on the S&P 500 Index dipped less than 0.05 percent. The MSCI All-Country World Index dipped 0.1 percent, the first retreat in more than a week. The U.K.’s FTSE 100 Index declined less than 0.05 percent. The MSCI Emerging Market Index decreased less than 0.05 percent.

Stocks Drift as Dollar Advances; Iron Ore Rises, Bloomberg, Feb 06