U.S. Stocks Mixed, VIX at 24-Yr Low as Bonds Drop: Markets WrapBy
CBOE Volatility gauge falls to 9.77 for lowest since 1993
Oil swings despite Saudi, Russian output signal; bonds advance
U.S. stocks ended virtually unchanged near all-time highs, while the dollar rose with Treasury yields as volatility drained from financial markets after a convincing defeat of populism in France’s presidential election.
The CBOE Volatility Index slumped to its lowest closing price since 1993. The S&P 500 Index rose by less than one point to close at a fresh record. The euro weakened after climbing for five of the past six days, as the result of the French vote was largely priced into equity markets. That added to dollar gains, while declines in Treasuries sent the 10-year yield to 2.38 percent. Oil edged above $46 a barrel.
Volatility faded from the U.S. equity and bond markets after Emmanuel Macron’s decisive triumph over the anti-euro Marine Le Pen dealt a blow to the populist wave that has roiled western democracies for the past year. But there was little room for a relief rally as the outcome was largely priced into markets. Investor focus now shifts to reading on the global economy for fresh signs that growth is accelerating after better-than-forecast data on American jobs.
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Here’s what investors will be watching this week:
- South Korea heads to the polls on Tuesday to elect a new president following the ouster of Park Geun-hye in a corruption scandal.
- Earnings this week include results from Walt Disney Co., Mitsubishi Corp., Toyota Motor Corp. and Deutsche Telekom AG.
Here are the main moves in markets:
- The S&P 500 rose less than one point to 2,399.38 as of 4 p.m. in New York, a new record. It pushed 0.1 percent higher shortly after the open to a fresh intraday high of 2,401.36, before falling as much as 0.2 percent.
- The Nasdaq 100 Index edged up 0.2 percent to claim another closing record, while small caps slumped 0.4 percent.
- The Stoxx Europe 600 slipped 0.1 percent, dragged down by miners.
- Emerging-market shares jumped 0.6 percent.
- The euro fell 0.6 percent to $1.0931, after gaining as much as 0.2 percent earlier. The currency has been trading near the highest level since November.
- The Bloomberg Dollar Spot Index advanced 0.5 percent following four straight weeks of declines.
- The yield on 10-year Treasury notes rose three basis points to 2.38 percent.
- French benchmark yields ended virtually unchanged at 0.841 percent while German equivalents stayed at 0.418 percent.
- West Texas Intermediate fluctuated before settling 21 cents higher at $46.43 a barrel in New York.
- Copper, the most actively traded commodity on the London Metal Exchange, slumped to a four-month low on Monday, wiping out gains for the year. Refined imports by China fell 30 percent to 300,000 metric tons in April, the lowest since October, according to preliminary customs data.
- Gold futures were little changed at $1,227 an ounce.
— With assistance by Blaise Robinson, Agnieszka De Sousa, Adam Haigh, and Simon Ballard