U.S. Stock Futures Drop as Treasury Yields Climb: Markets Wrap
https://www.bloomberg.com/news/articles/2019-...nd=premium
U.S. equity futures declined alongside European stocks and Asian shares rose on Thursday as investors grappled with the latest developments global trade. Treasuries stayed lower and the dollar was steady as American factory data disappointed.
News that China is proposing to buy an additional $30 billion a year of U.S. agricultural products did little to sway traders, and contracts across all three major U.S. indexes remained in the red. They had gained early in the day on reports negotiators are working on multiple memorandums of understanding which would form the basis of a final trade deal, but erased after China’s Dalian port banned coal imports from Australia. Chinese equities also slipped, the yuan pared an advance and the Aussie dollar slumped.
The Stoxx Europe 600 Index fell, weighed down by lenders as minutes of the latest ECB meeting showed policy makers setting up their March gathering as a key session to render their verdict on a regional slowdown and whether new long-term bank funding is required. The euro fluctuated before rising as mixed data on the private sector further complicated the picture. Core bonds in the region tracked the drop in Treasuries.
The slow but apparently steady progress toward a trade agreement between the world’s biggest economies could give fresh impetus to a rally in risk assets that had been showing signs of faltering, with MSCI’s global gauge of stocks up about 15 percent since Christmas Day. But the new front in the global spat, this time between China and Australia, risks denting investor sentiment before concrete progress is seen in Washington.
Data out Thursday showed orders placed with U.S. factories for business equipment unexpectedly fell in December for the fourth decline in five months, suggesting a loss of momentum amid uncertainty over the trade war with China and tighter financial conditions.
Elsewhere, oil drifted in a small range after an industry report showed a limited increase in American crude stockpiles. Emerging-market shares advanced.
Here are some key events coming up:
Bank of Canada Governor Stephen Poloz speaks on Thursday; ECB President Mario Draghi speaks on Friday, the same day Reserve Bank of Australia Governor Philip Lowe gives parliamentary testimony.
And these are the main moves in markets:
Stocks
Futures on the S&P 500 Index decreased 0.3 percent as of 8:36 a.m. New York time, the first retreat in a week and the largest dip in almost two weeks.
The Stoxx Europe 600 Index dipped 0.3 percent, the biggest decrease in more than a week.
The U.K.’s FTSE 100 Index decreased 1.1 percent to the lowest in more than a week on the largest dip in almost two weeks.
Germany’s DAX Index gained 0.1 percent to the highest in more than 11 weeks.
The MSCI Asia Pacific Index increased 0.3 percent to the highest in almost 20 weeks.
The MSCI Emerging Market Index advanced 0.2 percent to the highest in almost six months.
Currencies
The Bloomberg Dollar Spot Index declined less than 0.05 percent.
The euro advanced 0.2 percent to $1.1361, the strongest in two weeks.
The British pound increased 0.2 percent to $1.3082, the strongest in almost three weeks.
The Japanese yen climbed 0.2 percent to 110.61 per dollar.
Bonds
The yield on 10-year Treasuries advanced three basis points to 2.67 percent, the highest in a week on the largest gain in more than a week.
Britain’s 10-year yield jumped three basis points to 1.214 percent, reaching the highest in two weeks on its fifth straight advance and the biggest surge in almost four weeks.
Germany’s 10-year yield climbed three basis points to 0.13 percent, the highest in two weeks on the largest surge in six weeks.
Commodities
Gold declined 0.2 percent to $1,336.39 an ounce.
West Texas Intermediate crude fell 0.3 percent to $57.01 a barrel, the first retreat in more than a week.
https://www.bloomberg.com/news/articles/2019-...nd=premium
U.S. equity futures declined alongside European stocks and Asian shares rose on Thursday as investors grappled with the latest developments global trade. Treasuries stayed lower and the dollar was steady as American factory data disappointed.
News that China is proposing to buy an additional $30 billion a year of U.S. agricultural products did little to sway traders, and contracts across all three major U.S. indexes remained in the red. They had gained early in the day on reports negotiators are working on multiple memorandums of understanding which would form the basis of a final trade deal, but erased after China’s Dalian port banned coal imports from Australia. Chinese equities also slipped, the yuan pared an advance and the Aussie dollar slumped.
The Stoxx Europe 600 Index fell, weighed down by lenders as minutes of the latest ECB meeting showed policy makers setting up their March gathering as a key session to render their verdict on a regional slowdown and whether new long-term bank funding is required. The euro fluctuated before rising as mixed data on the private sector further complicated the picture. Core bonds in the region tracked the drop in Treasuries.
The slow but apparently steady progress toward a trade agreement between the world’s biggest economies could give fresh impetus to a rally in risk assets that had been showing signs of faltering, with MSCI’s global gauge of stocks up about 15 percent since Christmas Day. But the new front in the global spat, this time between China and Australia, risks denting investor sentiment before concrete progress is seen in Washington.
Data out Thursday showed orders placed with U.S. factories for business equipment unexpectedly fell in December for the fourth decline in five months, suggesting a loss of momentum amid uncertainty over the trade war with China and tighter financial conditions.
Elsewhere, oil drifted in a small range after an industry report showed a limited increase in American crude stockpiles. Emerging-market shares advanced.
Here are some key events coming up:
Bank of Canada Governor Stephen Poloz speaks on Thursday; ECB President Mario Draghi speaks on Friday, the same day Reserve Bank of Australia Governor Philip Lowe gives parliamentary testimony.
And these are the main moves in markets:
Stocks
Futures on the S&P 500 Index decreased 0.3 percent as of 8:36 a.m. New York time, the first retreat in a week and the largest dip in almost two weeks.
The Stoxx Europe 600 Index dipped 0.3 percent, the biggest decrease in more than a week.
The U.K.’s FTSE 100 Index decreased 1.1 percent to the lowest in more than a week on the largest dip in almost two weeks.
Germany’s DAX Index gained 0.1 percent to the highest in more than 11 weeks.
The MSCI Asia Pacific Index increased 0.3 percent to the highest in almost 20 weeks.
The MSCI Emerging Market Index advanced 0.2 percent to the highest in almost six months.
Currencies
The Bloomberg Dollar Spot Index declined less than 0.05 percent.
The euro advanced 0.2 percent to $1.1361, the strongest in two weeks.
The British pound increased 0.2 percent to $1.3082, the strongest in almost three weeks.
The Japanese yen climbed 0.2 percent to 110.61 per dollar.
Bonds
The yield on 10-year Treasuries advanced three basis points to 2.67 percent, the highest in a week on the largest gain in more than a week.
Britain’s 10-year yield jumped three basis points to 1.214 percent, reaching the highest in two weeks on its fifth straight advance and the biggest surge in almost four weeks.
Germany’s 10-year yield climbed three basis points to 0.13 percent, the highest in two weeks on the largest surge in six weeks.
Commodities
Gold declined 0.2 percent to $1,336.39 an ounce.
West Texas Intermediate crude fell 0.3 percent to $57.01 a barrel, the first retreat in more than a week.
