Yuan Gains With U.S. Stock Futures on Trade Talks

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(Sept 23): The yuan climbed along with U.S. equity futures as investors monitored signs of progress in trade discussions between America and China. The yen edged lower and stocks opened mixed in Asia.

Futures on the S&P 500 Index were higher. The Korean won sank as exports continued to deteriorate. Shares in Sydney rose and were little changed in Seoul. Japan is closed for a holiday. China’s Ministry of Commerce said trade groups from the two nations held “constructive” talks in Washington last week. Also soothing sentiment that took a hit at the end of last week was a report that China’s withdrawal from a planned visit to U.S. farm states had nothing to do with trade talks.

While traders remain on edge due to fragile negotiations on the trade front, markets are pricing increased action from many central banks around the world. Global equities are on course for an advance this month following the Federal Reserve’s second interest-rate cut of 2019.

With Tokyo closed for a holiday, market moves may be exacerbated due to thin liquidity. Cash Treasuries won’t trade until the London open and Japanese equities will be shut.

Elsewhere, oil advanced following a report that full repairs to Saudi oil fields hit by the drone attack may take many months.

These are some key events coming up this week:

    New York Fed President John Williams speaks at the U.S. Treasury Market Conference hosted at his bank Monday. San Francisco Fed President Mary Daly delivers remarks in Salem, Oregon.
    Decisions are due Wednesday from central banks in New Zealand and Thailand. Thursday brings a monetary policy decision in the Philippines.
    Core PCE -- the Fed’s preferred inflation measure -- is forecast for 1.8%, the strongest reading since January. That’s due Friday.

Here are the main moves in markets:
Stocks

    Futures on the S&P 500 Index rose 0.5% as of 10:06 a.m. in Sydney. The underlying gauge fell 0.5% on Friday.
    South Korea’s Kospi index dipped 0.2%.
    Australia’s S&P/ASX 200 Index added 0.5%.

Currencies

    The yen fell 0.1% to 107.64 per dollar.
    The offshore yuan rose 0.3% to 7.1017 per dollar.
    The euro bought $1.1019.
    The British pound was steady at $1.2471.
    The won fell 0.4% to 1,193.30 per dollar.

Bonds

    Futures on 10-year Treasuries were little changed. The yield on 10-year notes fell six basis points to 1.72% on Friday.
    Australia’s 10-year yield slipped two basis points to 1%.

Commodities

    Gold slid 0.2% to $1,514.22 an ounce.
    West Texas Intermediate crude gained 1.1% to $58.71 a barrel. - Bloomberg