Stocks Trade Mixed As Dollar Falls For Third Day: Markets WrapStocks slipped in Europe and were mixed in Asia on Monday, while U.S. index futures edged higher in the penultimate day of a blockbuster year for many equity markets. The post Stocks Trade Mixed As Dollar Falls For Third Day: Markets Wrap appeared first on Investor's Business Daily.

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Stocks slipped in Europe and were mixed in Asia on Monday, while U.S. index futures edged higher in the penultimate day of a blockbuster year for many equity markets. The dollar headed for a third straight session of declines.

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The Stoxx Europe 600 Index opened lower, led by technology shares. In Asia, China's listed brokerages rallied on the mainland after the legislature approved changes to the law that may make it easier for new firms to trade. Citic Securities Co. surged by the 10% daily limit at the close in Shanghai. Shares in Hong Kong also climbed, while the other major markets in Asia fell.

Futures on the S&P 500 Index edged up after the gauge had a lackluster session Friday. Treasuries fell along with most sovereign bonds in Europe. The dollar fell against its major peers as well as versus emerging market currencies such as the Malaysian ringgit and South Korean won.

Investors are reducing trades and that may continue through the New Year holidays in Europe and America, capping a 2019 that saw several global equity benchmarks set record highs. With the backdrop of persistent central bank stimulus, strong shareholder payouts and the anticipated sealing of a U.S.-China interim trade deal in January, many market participants say they're still bullish for early 2020.

"There's a continuation of companies borrowing to pay that dividend, or special dividends, and to buy back stocks," Hilary Kramer, chief investment officer of Kramer Capital Research, said on Bloomberg TV. "That should be good enough at least" for the next quarter to see gains in U.S. stocks, she said. She highlighted financials and small caps among those that may rise in the new year.

Elsewhere, Hong Kong's dollar is poised to notch its biggest monthly gain versus the greenback since September 2003. The currency was steady after strengthening 0.53% for December through Friday.

Here are some events to watch for this week:

• China's official manufacturing PMI is due Tuesday, and the Caixin version comes Thursday.
• Most global markets will be closed on Jan. 1. U.S. fixed-income markets also close early at 2 p.m. EST Tuesday.
• World leaders including China's Xi Jinping and North Korea's Kim Jong Un are set to deliver New Year addresses.
• Federal Open Market Committee minutes will be released on Friday.
• U.S. ISM manufacturing is also due Friday. The Institute for Supply Management's PMI is forecast to show a contraction for a fifth straight month.

These are some of the moves in major markets:

Stocks

• The Stoxx Europe 600 Index sank 0.3% as of 8:25 a.m. London time.
• Futures on the S&P 500 Index increased 0.2%.
• The Shanghai Composite Index surged 1.2%.
• The MSCI Asia Pacific Index decreased 0.1%.

Currencies

• The Bloomberg Dollar Spot Index declined 0.2%.
• The British pound increased 0.2%.
• The euro climbed 0.2% to $1.1198.
• The Japanese yen jumped 0.3% to 109.16 per dollar.
• The South Korean Won jumped 0.4% to 1,156.18 per dollar.

Bonds

• The yield on 10-year Treasuries climbed one basis point to 1.89%.
• Germany's 10-year yield jumped three basis points to -0.23%.
• Britain's 10-year yield increased two basis points to 0.773%.
• France's 10-year yield climbed three basis points to 0.079%.

Commodities

• West Texas Intermediate crude was little changed at $61.73 a barrel.
• Gold increased 0.2% to $1,513.61 an ounce.
• Iron ore was little changed at $90.10 per metric ton.
• Soybeans futures rose 0.5% to $9.46 a bushel.

The post Stocks Trade Mixed As Dollar Falls For Third Day: Markets Wrap appeared first on Investor's Business Daily.

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