Stocks, U.S. Futures Gain After Trump Extends Aid: Markets Wrap

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(Bloomberg) — U.S. equity futures edged higher with European stocks as President Donald Trump’s executive actions to extend economic aid bolstered investor enthusiasm.Risk assets climbed even after China said it would sanction American officials in retaliation over Hong Kong. Bank shares rallied in Europe and oil advanced after Saudi Aramco said demand will continue to improve. Portugual’s 30-year bond yield fell below 1% for the first time since March. Treasuries and the dollar were steady.‘Astounding’ Apple Close to Eclipsing Entire Russell 2000: ChartOn Saturday, Trump signed four executive orders to maintain some assistance, including for unemployment benefits, a temporary payroll tax deferral, eviction protection and student-loan relief.Trump’s policy announcements come as Democrats and Republicans are still negotiating a broader additional coronavirus relief package. The two sides are still trillions of dollars apart on overall spending and on key issues, including aid to state and local governments and the amount of supplementary unemployment benefits.“The fresh stimulus provided by President Trump through executive orders is better than none at all and provides a stop-gap solution,” said Lee Hardman, a strategist at MUFG Bank in London. “Pressure remains though on both the Democrats and Republicans to reach a more substantial and durable compromise solution.”European stocks briefly dipped on Monday after China retaliated against the U.S. by sanctioning 11 Americans. The list includes Senators Marco Rubio and Ted Cruz, but no members of the Trump administration.Still, it’s another sign of discord between the two nations as the Trump administration takes a harder line against China in the run-up to the November election.Elsewhere, shares in Lebanese real-estate company Solidere fell as much as 13% after trading for the first time since last week’s deadly blast in Beirut. The stock, seen as a hedge against surging inflation and the sliding Lebanese pound, is still up 85% this year.Lebanon’s Biggest Stock Slumps As Trading Resumes in BeirutHere are some key events coming up:Earnings include Barrick Gold, SoftBank, Telstra, Deutsche Telekom, Carlsberg, Tencent and Zealand’s policy decision is due on Wednesday.China releases a slew of data for July on Friday, including industrial production and retail sales.U.S. retail sales are expected Friday, with a smaller increase forecast for July than in the prior two months.These are the main moves in markets:StocksFutures on the S&P 500 Index increased 0.1% as of 6:22 a.m. New York time.The Stoxx Europe 600 Index rose 0.2%.The MSCI Asia Pacific Index was little changed.The MSCI Emerging Market Index declined 0.2%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%.The euro sank 0.2% to $1.1762.The British pound was little changed at $1.3048.The Japanese yen weakened 0.1% to 106 per dollar.The offshore yuan was little changed at 6.9697 per dollar.BondsThe yield on 10-year Treasuries declined one basis point to 0.55%.The yield on two-year Treasuries declined one basis point to 0.12%.Germany’s 10-year yield sank two basis points to -0.53%.Britain’s 10-year yield fell one basis point to 0.125%.Japan’s 10-year yield dipped one basis point to 0.012%.CommoditiesWest Texas Intermediate crude gained 0.6% to $41.83 a barrel.Brent crude increased 0.3% to $44.84 a barrel.Gold weakened 0.2% to $2,031.17 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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