Treasuries Rise, U.S. Stocks Mixed Before Holiday: Markets Wrap

  • European banks lift equities, dollar resume its advance
  • Gold set for seventh weekly decline, crude falls below $53

Treasuries headed for the first weekly gain since the election, while U.S. stocks fluctuated in thin trading before the holidays. European equities halted a two-day slide and Italy’s bonds climbed as the nation pledged to provide support for its ailing lenders.

The yield on the 10-year Treasury note edged lower as China signaled it’s open to slower growth in its economy. The S&P 500 Index was little changed about 0.5 percent below a record. The Dow Jones Industrial Average churned near 19,910. The Stoxx Europe 600 Index held this month’s 5.3 percent rally that has taken it within 1.6 percent of wiping out its losses for the year. Italian bonds gained as Banca Monte dei Paschi di Siena SpA said it will ask for a “precautionary” capital increase. Deutsche Bank AG rose after the lender agreed to settle U.S. mortgage probes. Gold headed for a seventh consecutive weekly decline, the longest run since August 2015.

Financial markets showed little movement on the last trading day before the Christmas holidays as investors assess the post-election rally that’s added trillions to the value of American equities and lifted the dollar to a multiyear high. Chinese President Xi Jinping indicated he’s open to economic growth slowing below the government’s 6.5 percent target. While trading in European equities was 40 percent lower than the 30-day average, the removal of a legal cloud over Deutsche Bank and rescue of Monte Paschi lifted banks in the region.Read More: Markets live blog here.

Stocks

  • The S&P 500 rose less than one point to 2,260 at 11:25 a.m. in New York. The index is flat in the week. Trading was 54 percent below the 30-day average at this time of day.
  • Strong data on housing and consumer confidence did little to alter perceptions of the economy.
  • The Stoxx Europe 600 Index fell less than a point and is little changed in the five days.
  • Deutsche Bank climbed 0.8 percent as it agreed to pay $7.2 billion to resolve a years-long U.S. investigation into its dealings in mortgage-backed securities. Its Tier 1 notes, the first to take losses in a crisis, gained about 4 cents cents on the euro to 86.5 cents, the highest since Jan. 28, according to data compiled by Bloomberg

Bonds

  • Treasuries gained as the 10-year yield fell one basis point to 2.54 percent.
  • Italian 10-year yields declined five basis points to 1.80 percent, while German bund yields slid three basis points to 0.22 percent.

Currencies

  • The dollar gained against eight of its Group of 10 nation peers.
  • The pound fell 0.4 percent to $1.2240, the lowest level versus the greenback since Nov. 2, even after data showed the U.K. economy expanded more than initially reported in the third quarter.

Commodities

  • Gold for immediate delivery edged higher in London trading, adding 0.2 percent to $1,130.50 an ounce. It’s still set for a seventh week of declines.
  • West Texas Intermediate crude for February delivery in New York fell 0.3 percent to $52.79 a barrel.

Source: Treasuries Rise, U.S. Stocks Mixed Before Holiday: Markets Wrap