Stocks Hover, Metals Rally as Markets Digest Data

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Gold Silver Reports — Stocks held firm Monday as metals climbed on better-than-expected Chinese growth. The pound fell as Brexit negotiations resumed.

The S&P 500 Index rose slightly after reaching a record on Friday. The Stoxx Europe 600 Index swung between gains to losses after a report showed stagnating consumer prices in the euro area. Zinc and iron ore were the biggest winners, as metals advanced after figures showed China’s economy grew faster than expected in the second quarter. The dollar steadied after a five-day losing streak. Treasury yields slipped.

With U.S. equity markets flirting with new highs, investor appetite for risk remains robust. Citigroup Inc.’s Global Risk Aversion Macro Index, which measures tolerance across a series of asset classes, is at a three-year low and in line with levels seen before the 2008 financial crisis.

Growth figures for the world’s second biggest economy followed U.S. inflation data last week that undermined the case for tighter monetary policy and pushed stocks to record levels. European data was largely in line with expectations, leaving investors to weigh three days of gains against the uncertainty of a European Central Bank meeting this week and the ramping up of the earnings season.

The ECB meets Thursday. and no rate hike before 2019. Reuters cited unidentified officials as saying the bank is keen to keep asset purchases open-ended.

The Bank of Japan is forecast to stand pat at its meeting Thursday.

Round two of Brexit talks get underway in Brussels.

Australia’s central bank on Tuesday releases minutes of its July 4 gathering. Government data on the labor market is due Thursday.

Here are the main moves in markets:

Stocks

The S&P 500 was up 0.1 percent to 2,462.11 as of 11:06 a.m. in New York, adding to Friday’s all-time high.

The Dow Jones Industrial Average continued its record run and was up slightly to 21,649.22. The Nasdaq 100 Index rose nearly 0.1 percent.

Europe’s Stoxx 600 Index was essentially flat even as miners climbed 1 percent.
Currencies

The euro was little changed at $1.1471, and the pound lost 0.3 percent to $1.3062.
Bloomberg’s Dollar Spot Index rose 0.1 percent.

Bonds  

The 10-year yield on U.S. Treasuries declined one basis point to 2.32 percent after dropping five basis points last week.

The yield on German 10-year bunds fell one basis point, while the yield on French benchmark bonds dropped two basis points.

Commodities  

West Texas Intermediate crude was essentially flat at to $46.52 a barrel.

Gold rose 0.4 percent to $1,233.52 an ounce.

Copper climbed 1.5 percent, zinc gained 1.7 percent and iron ore added 4.4 percent.

Asia  

Despite the GDP data the Shanghai Composite Index retreated 1.4 percent amid concerns over the implications of a weekend meeting where President Xi Jinping said the central bank would play a greater role in defending against risks.

The kiwi fell after the deputy governor of New Zealand’s central bank said a lower currency would help rebalance growth.

Japanese markets were closed for Marine Day. South Korea’s Kospi Index advanced to an all-time high.  — Neal Bhai Reports

Stocks Hover, Metals Rally as Markets Digest Data | Neal Bhai Reports | Gold Silver Reports