Notable moves in markets and some key events coming up this week 

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Stocks Mixed Before Earnings, Fed; Yen Pares Gains

Stocks in Asia were mixed at the start of a week packed with earnings results and a Federal Reserve interest-rate decision. Oil remained below $46 a barrel before an OPEC meeting, while the yen pared earlier gains.

Australia stocks were lower, Japan’s Topix trimmed losses while benchmarks in Hong Kong and China advanced. The dollar held losses after touching the lowest level since May 2016 on Friday. Crude fluctuated in a narrow range after dropping 1.7 percent last week. Treasuries and gold were little changed.

Earnings from industry bellwethers from Amazon.com Inc. to GlaxoSmithKline Plc and central bank policy discussions are providing the latest tests for the bull market that’s propelled the value of global equities to $78 trillion. Investors are also bracing for further surprises from Washington after President Donald Trump sought to impose order in his White House in the face of a widening Russia probe.

Senior adviser Jared Kushner will be interviewed by the Senate Intelligence Committee on Monday, and Donald Trump Jr. and former Trump campaign Chairman Paul Manafort will go before Senate committees on Wednesday.

Here are some key events coming up this week:

  • China posts industrial profits for last month, with early indicators pointing upward. Japanese June data also due this week may show sluggish CPI, even amid a tightening labor market and increased household spending.
  • Fed chief Janet Yellen is in something of a bind: inflation remains muted and the job market robust. As a result, the central bank is expected to make no change to policy on Wednesday with investors and economists parsing the statement for clues on how officials plan to proceed in reducing their massive portfolio.
  • Alphabet Inc. and Facebook Inc. results are on the calendar this week, as are global banks Deutsche Bank AG, Nomura Holdings Inc., BNP Paribas SA and UBS Group AG. Pharma giants like Merck, Roche and Eli Lilly are also due along with McDonald’s, Caterpillar, GM, Ford, Boeing, Royal Dutch Shell, Total and Exxon.

These are the notable moves in markets:

Stocks

  • Japan’s Topix index slid 0.5 percent as of 2:43 p.m. in Tokyo, after dropping as much as 1 percent earlier in the day. Australia’s S&P/ASX 200 Index lost 0.7 percent and South Korea’s Kospi index dropped 0.1 percent.
  • The Shanghai Composite Index advanced 0.5 percent while Hong Kong’s Hang Seng was also 0.5 percent higher. India’s Sensex climbed 0.6 percent to a record.
  • Futures on the S&P 500 Index fell 0.1 percent. The underlying gauge closed flat on Thursday and Friday last week.

Currencies

  • The yen rose less than 0.1 percent to 111.05 per dollar, after strengthening as much as 0.3 percent earlier. The currency has gained for the past five sessions, closing Friday at the highest level since July 16.
  • The euro increased 0.1 percent to $1.1671. The New Zealand dollar weakened 0.4 percent.
  • The Bloomberg Dollar Spot Index was little changed, after dropping for two straight weeks.
  • The Australian dollar traded above 79 U.S. cents ahead of a speech by Reserve Bank of Australia Governor Philip Lowe on Wednesday. Guy Debelle, the central bank’s No. 2, last week appeared to tone down the RBA’s more hawkish tone recently.

Commodities

  • WTI crude rose less than 0.1 percent to $45.81 a barrel. Limiting oil output from Nigeria and Libya won’t be on the agenda when OPEC meets on Monday, with both African nations saying they’ll need to keep pumping at a higher level before they can join a global effort to stem a supply glut, according to two people familiar with the planned talks.
  • Gold was little changed at $1,254.48 an ounce, having climbed the past two weeks.

Bonds

  • The yield on the 10-year Treasury note was little changed at 2.24 percent.
  • Australian benchmark yields fell three basis points to 2.67 percent.

Source: Bloomberg – Stocks Mixed Before Earnings, Fed; Yen Pares Gains: Market Wrap

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