(Bloomberg) -- U.S. stocks turned lower as investors assessed the latest progress toward a government spending bill. Treasuries slipped along with the dollar.
The S&P 500 Index retreated in late-morning trading with talks between House Democrats and the White House slated for later, even as opposition to a sizable aid package hardens in the Republican-controlled Senate. Futures advanced overnight on signs of progress toward a deal and the latest data from China showing its economy continues to rebound. The 10-year Treasury yield rose toward 0.77% and the dollar weakened versus major peers.
Speaker of the House Nancy Pelosi set a Tuesday deadline for a stimulus vote after lengthy discussions over the weekend with Treasury Secretary Steven Mnuchin, though the Republican-controlled Senate has signaled opposition to a large bill. President Donald Trump renewed his offer to go beyond the dollar amounts now on the table. The U.S. had a fifth consecutive day of infections over 50,000. In Europe, Italy’s cases swelled to a daily record as the government prepares new containment measures. Globally, cases topped 40 million.
In Europe, stocks turned lower, with an earnings beat by Julius Baer leading banks higher and setting the pace for rivals. The pound jumped by the most since August as British officials signalled they were ready to water down controversial lawbreaking Brexit legislation, a move which could reopen talks with the European Union over future trading relationships.
Elsewhere, oil fluctuated before an OPEC+ meeting to assess the state of the market as demand comes under pressure from the threat of new virus restrictions.
Here are some key events this week:
Brexit trade talks are likely to continue at least into next week if the U.K. and EU fail to reach an agreement.Australia central bank minutes are out Tuesday.The final presidential debate before the U.S. election, between President Donald Trump and former Vice President Joe Biden, will be live from Nashville, Tennessee on Thursday.
These are some of the main moves in markets:
The S&P 500 Index slipped 0.3% at 11:22 a.m. in New York.The Stoxx Europe 600 Index lost 0.1%.The MSCI Asia Pacific Index rose 0.8%.The MSCI Emerging Market Index rose 0.5%.
The Bloomberg Dollar Spot Index decreased 0.3%.The euro climbed 0.6% to $1.1787.The British pound increased 0.7% to $1.3011.The onshore yuan strengthened 0.2% to 6.685 per dollar.The Japanese yen strengthened 0.1% to 105.31 per dollar.
The yield on 10-year Treasuries climbed two basis points to 0.77%.The yield on two-year Treasuries climbed one basis point to 0.15%.Germany’s 10-year yield gained one basis point to -0.61%.Japan’s 10-year yield jumped less than one basis point to 0.026%.Britain’s 10-year yield climbed two basis points to 0.201%.
West Texas Intermediate crude was little changed at $40.86 a barrel.Brent crude was little changed at $42.92 a barrel.Gold strengthened 0.9% to $1,915.52 an ounce.
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