U.S. Stocks Shrug Off Impeachment, Push Higher: Markets Wrap

(Bloomberg) — U.S. equities and European stocks gained on Wednesday as investors digested a flurry of corporate news amid a lull in trade-war headlines. Treasuries slipped and the British pound weakened.

The rose early Wednesday, a day after inching up to another record amid positive U.S. factory and housing data. General Mills Inc (NYSE:). jumped after posting profit that topped estimates, while FedEx Corp (NYSE:). slid following a cut to its forecast. With few big economic headlines imminent, and much of the U.S. focused on the impeachment vote, investors may take a wait-and-see stance as the holidays near.

“The most interesting development on Wednesday will likely be how little impeachment matters for the Treasury market, and cross-asset valuations writ large,” Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, wrote in a note, adding that a Senate conviction is unlikely. “The trial will occur during Q1 of next year, but is more likely to distract from underlying economics and momentum than anything else.”

With global stocks close to all-time highs and the U.S.-China trade accord announced Friday yet to be signed, traders are finding few reasons to bid prices higher. The outlook for America’s monetary policy remains steady — two Federal Reserve policy makers reiterated that interest rates are on hold — yet the miserable results from FedEx were a reminder of the headwinds to growth.

The Index moved higher after struggling for traction as national benchmarks traded mixed, with Germany’s gauge underperforming even as data showed business expectations improved for a third month.

PSA Group rose and Fiat Chrysler Automobiles NV (NYSE:) was steady as they agreed to combine in a deal to create the world’s fourth-biggest auto manufacturer. Bang & Olufsen (LON:) plunged after the luxury TV and stereo maker issued its fourth profit warning in a year. The extended its losses after tumbling Tuesday on renewed concern that a no-deal Brexit is possible. The strengthened against most of its G-10 peers.

Earlier in Asia, equities were mixed, with shares falling in but rising in and India. The yuan was steady offshore after China’s central bank injected liquidity into the financial system.

Meanwhile, West Texas pulled back after rising above $61 a barrel for the first time in three months.

Here are some key events to watch for this week:

• Policy decisions are due Thursday from the Bank of Japan and the Bank of England.
• Revised U.S. GDP data are due Friday.
• Friday also brings quadruple witching in the U.S., the simultaneous expiration date of stock index futures, stock index options, stock options and single stock futures. Expect elevated trading volume, particularly in the last hour of trading.

These are the main moves in markets:

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