US-APEC Minister Meeting Next On Agenda – Europe Market Wrap

US stock futures and Treasuries posted small moves, with investors signaling that the equity rally is losing momentum as it stretches into a fourth week. The dollar fell.

S&P 500 contracts were little changed after the index closed at the highest since February. The dollar weakened 0.4% after a person familiar with the matter said the US and South Korea discussed their currency policies in early May, fueling speculation President Donald Trump’s administration is open to a weaker greenback. The 10-year Treasury yield declined two basis points to 4.45%.

The won jumped more than 1% and neighboring currencies, including the Japanese yen, also rose against the dollar.

Investors took news of the talks between South Korea and the US as reason to suspect foreign governments may accept strength in their exchange rates to smooth the way to trade deals with the US.
Trump and other administration officials have argued weakness in Asian currencies versus the dollar have handed an unfair advantage for regional exporters over US rivals.