published Jun 12, 2018 2:20:06 PM, by Samuel Potter and Sarah Ponczek
(Bloomberg) —

U.S. equity indexes drifted in listless trading Tuesday while investors put the U.S.-North Korea meeting in the rear-view and looked forward to this week’s big central bank decisions.

With volume running below the 30-day average, the S&P 500 Index was little changed after hitting session lows in afternoon trading. Yields on 10-year Treasuries climbed, while the dollar gained and the euro fell. Safe-haven assets including the yen and gold edged lower after President Donald Trump and Kim Jong Un signed a document pledging to work toward peace on the Korean peninsula.

The summit and last weekend’s rancorous G-7 meeting have yielded the spotlight to central banks, with a seemingly certain Federal Reserve rate increase on Wednesday, plus the prospect of a hawkish European Central Bank tilt on Thursday. The Bank of Japan’s policy decision is due Friday. Tuesday’s U.S. inflation figures — which were in line with estimates — may reignite the four-hikes-in-2018 debate ahead of the Fed’s decision.
“The main issues are the Federal Reserve, the ECB and the Bank of Japan, not really the tweets regarding trade issues — and that’s what we’re all waiting for,” Derek Green, wealth adviser at Titus Wealth Management in California, said by phone. “Maybe it’s a calm before the storm. Volume will definitely pick up starting tomorrow. You’ve got three press conferences in three days.”

The Stoxx Europe 600 Index retreated after modest gains for many Asian shares failed to ignite the MSCI Asia Pacific Index. The British pound rose after Prime Minister Theresa May fended off a rebellion by pro-EU Conservatives and won a key Brexit vote, only to give up most of that gain.

Elsewhere, West Texas crude fluctuated after Iraq joined other OPEC members in resisting a push to boost oil supplies. The Turkish lira led decliners in emerging-market currencies ahead of the possible U.S. rate increase, which could suck more cash from developing nations.

These are some key events to watch this week:
The Federal Reserve is expected to raise interest rates Wednesday as the U.S. economy remains solid. The European Central Bank rates decision comes Thursday with a briefing from President Mario Draghi. The Bank of Japan June monetary policy decision and news conference is Friday. FIFA expects more than 3 billion viewers for the World Cup that begins this week in Russia.

And these are the main moves in markets:

Stocks
The S&P 500 Index climbed less than 0.05 percent as of 3:17 p.m. New York time. The Stoxx Europe 600 Index fell 0.1 percent. The U.K.’s FTSE 100 Index fell 0.4 percent. Germany’s DAX Index fell less than 0.05 percent. The MSCI Emerging Market Index fell 0.1 percent.

Currencies
The Bloomberg Dollar Spot Index increased 0.3 percent to its highest in over a week. The euro fell 0.3 percent to $1.1751. The British pound fell less than 0.05 percent to $1.3375. The Japanese yen decreased 0.3 percent to 110.32 per dollar, the weakest in almost three weeks.

Bonds

The yield on 10-year Treasuries increased one basis point to 2.96 percent. Germany’s 10-year yield fell less than one basis point to 0.49 percent. Britain’s 10-year yield decreased one basis point to 1.401 percent.

Commodities

West Texas Intermediate crude climbed 0.2 percent to $66.27 a barrel. Gold fell 0.4 percent to $1,295.49 an ounce, the largest fall in over a week. LME copper fell 0.5 percent to $7,222 a metric ton.

–With assistance from Andreea Papuc and Janine Wolf.To contact the reporters on this story: Samuel Potter in London at spotter33@bloomberg.net ;Sarah Ponczek in New York at sponczek2@bloomberg.net To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net Andrew Dunn

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