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(Bloomberg) -- U.S. stocks rebounded, while the dollar and Treasuries struggled for direction as investors awaited details of Republican tax cuts and the Federal Reserve’s latest decision. The euro slipped as data showed inflation unexpectedly slowed in the region.
The S&P 500 Index pressed higher as a torrent of decisions with the potential to move markets loom. President Donald Trump signaled he’ll name a new Fed chair Thursday, while Wednesday brings the central bank’s rate decision and some specifics on tax plans. The 10-year Treasury yield held near 2.37 percent, while the greenback was mixed versus major peers. Oil slipped from an eight-week high.
In Europe, Spanish equities outperformed as the government in Madrid won the power struggle against Catalan separatists. European bonds edged lower after data showed the economy appeared to be strengthening. A drop in China’s factory gauge sparked some caution in Asia, with equity benchmarks mixed. Japanese stocks ended the day slightly lower after the Bank of Japan maintained its key policy rate.
The European data Tuesday came amid mixed signals about the global economy. China’s official factory gauge fell this month, though the country’s economy continues to defy predictions of a sharper slowdown. The euro-area’s unemployment rate inched lower in September as the economy expanded for an 18th consecutive quarter, but consumer inflation unexpectedly slowed in October, complicating the European Central Bank’s task as it considers tightening policy.
Meanwhile, investors trying to second-guess monetary policy in the world’s biggest economy remain fixated on the identity of the next Fed chief, with the New York Times reporting Jerome Powell will get the nod. And American tax reform also remains a key theme, with lawmakers said to be considering a phase-in plan. The indictment of former Trump campaign aides in Robert Mueller’s investigation of Russian meddling in the U.S. election, however, may pose a danger to the White House as it tries to push tax cuts though Congress.
Terminal users can read more in our Markets Live blog.
Here are some key upcoming events this week:
- The U.S. central bank’s next rate decision is on Wednesday, with economists expecting policy makers to hold rates for now and to increase them at the December meeting.
- The U.S. October payroll report comes out Friday.
- Trump starts an 11-day trip to Asia, his first as president, on Friday. Trade and security issues -- particularly North Korea -- will probably be in focus.
- A probable Bank of England rate hike on Thursday will be the first in a decade.
- The slew of earnings releases will culminate with Apple Inc. results.
- Germany’s markets are closed for a public holiday.
And these are the main moves in markets:
- The S&P 500 rose 0.1 percent to 2,575.20 at 9:34 a.m. in New York.
- The Stoxx Europe 600 Index increased 0.3 percent to the highest in more than five months.
- The U.K.’s FTSE 100 Index gained 0.3 percent to the highest in a week.
- Spain’s IBEX Index gained 0.4 percent to the highest in almost 11 weeks.
- The Bloomberg Dollar Spot Index increased 0.1 percent.
- The euro dipped 0.1 percent to $1.1634.
- The British pound rose less than 0.05 percent to $1.3212.
- The yield on 10-year Treasuries climbed one basis point to 2.38 percent.
- Germany’s 10-year yield fell less than one basis point to 0.37 percent, the lowest in two weeks.
- Britain’s 10-year yield dipped one basis point to 1.335 percent, the lowest in more than a week.
- West Texas Intermediate crude rose 0.1 percent to $54.18 a barrel, the highest in more than six months.
- Gold decreased 0.3 percent to $1,272.21 an ounce.
- Japan’s Topix index declined 0.3 percent at the close of trading in Tokyo, while the Nikkei 225 Stock Average was flat. SoftBank declined 4.6 percent.
- Australia’s S&P/ASX 200 Index fell 0.2 percent.
- The Kospi in Seoul climbed 0.9 percent.
- Hong Kong’s Hang Seng Index was steady while the Shanghai Composite Index was up 0.1 percent.
- The Japanese yen declined 0.2 percent to 113.36 per dollar.
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