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Europe Stocks Drop, U.S. Equity Futures Fluctuate: Markets Wrap
(Bloomberg) -- Caution hung over markets on Wednesday, with European stocks falling following a late drop on Wall Street, and U.S. equity futures edging higher alongside Asia shares. Treasuries and gold held on to the previous day’s gains.The Stoxx Europe 600 Index opened lower, led by auto and mining shares, as corporate earnings continued to underscore the devastating impact of the pandemic. The world’s largest container line A.P. Moller-Maersk A/S said the fallout from Covid-19 will drive volumes down by as much as 25% this quarter, while ABN Amro Bank NV reported its first loss since 2013.S&P 500 futures fluctuated after the underlying index sank more than 2% late Tuesday on downbeat comments from regional Federal Reserve chiefs and caution from the top U.S. infectious-disease official Anthony Fauci about reopening early. The dollar steadied versus its biggest peers.Shares nudged higher across most of Asia, though strong gains were seen in India, where the benchmark jumped more than 2% after Prime Minister Narendra Modi said his government will spend a total of 20 trillion rupees ($265 billion) to help the economy weather the fallout from the pandemic.India aside, many equity markets are coming under renewed pressure as investors debate whether the rally from March lows has gone too far as they weigh the virus’s spread and how the re-opening of economies will affect markets. Veteran investor Stan Druckenmiller said the risk-reward calculation for stocks is the worst he’s seen in his career.“Most of the peak-virus global recovery trade maybe baked into financial markets,” Jeffrey Halley, senior market analyst, Asia Pacific, at OANDA, said in a note. “We are entering a period of sideways consolidation.”Fed Chairman Jerome Powell may offer fresh cues on the outlook for the world’s largest economy, and for monetary policy, when he speaks Wednesday.Elsewhere, the New Zealand dollar tumbled after the country’s central bank boosted its asset purchase program and indicated openness toward negative interest rates. Oil retreated from a five-week high. Australia issued A$19 billion ($12.3 billion) in new 10-year sovereign bonds, a second record-breaking sale in as many months.Here are some key events coming up:OPEC gives its monthly oil market report on Wednesday.Fed Chair Jerome Powell speaks on WednesdayU.S. weekly jobless claims data is due Thursday.China on Friday releases industrial production and retail sales data for April.These are some of the main moves in markets:StocksThe Stoxx Europe 600 Index fell 1.3% as of 8:17 a.m. London time.Futures on the S&P 500 Index gained 0.1%.Germany’s DAX Index dipped 1.7%.India’s Sensex Index jumped 2%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro was little changed at $1.0846.The British pound increased 0.2% to $1.228.The Japanese yen strengthened 0.1% to 107.07 per dollar.BondsThe yield on 10-year Treasuries gained less than one basis point to 0.67%.Germany’s 10-year yield fell two basis points to -0.52%.Britain’s 10-year yield declined two basis points to 0.226%.New Zealand’s 10-year yield decreased 12 basis points to 0.626%.CommoditiesWest Texas Intermediate crude fell 0.5% to $25.65 a barrel.Gold was little changed at $1,703.51 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stocks-open-lower-u-213531394.html?.tsrc=rss
(Bloomberg) -- Caution hung over markets on Wednesday, with European stocks falling following a late drop on Wall Street, and U.S. equity futures edging higher alongside Asia shares. Treasuries and gold held on to the previous day’s gains.The Stoxx Europe 600 Index opened lower, led by auto and mining shares, as corporate earnings continued to underscore the devastating impact of the pandemic. The world’s largest container line A.P. Moller-Maersk A/S said the fallout from Covid-19 will drive volumes down by as much as 25% this quarter, while ABN Amro Bank NV reported its first loss since 2013.S&P 500 futures fluctuated after the underlying index sank more than 2% late Tuesday on downbeat comments from regional Federal Reserve chiefs and caution from the top U.S. infectious-disease official Anthony Fauci about reopening early. The dollar steadied versus its biggest peers.Shares nudged higher across most of Asia, though strong gains were seen in India, where the benchmark jumped more than 2% after Prime Minister Narendra Modi said his government will spend a total of 20 trillion rupees ($265 billion) to help the economy weather the fallout from the pandemic.India aside, many equity markets are coming under renewed pressure as investors debate whether the rally from March lows has gone too far as they weigh the virus’s spread and how the re-opening of economies will affect markets. Veteran investor Stan Druckenmiller said the risk-reward calculation for stocks is the worst he’s seen in his career.“Most of the peak-virus global recovery trade maybe baked into financial markets,” Jeffrey Halley, senior market analyst, Asia Pacific, at OANDA, said in a note. “We are entering a period of sideways consolidation.”Fed Chairman Jerome Powell may offer fresh cues on the outlook for the world’s largest economy, and for monetary policy, when he speaks Wednesday.Elsewhere, the New Zealand dollar tumbled after the country’s central bank boosted its asset purchase program and indicated openness toward negative interest rates. Oil retreated from a five-week high. Australia issued A$19 billion ($12.3 billion) in new 10-year sovereign bonds, a second record-breaking sale in as many months.Here are some key events coming up:OPEC gives its monthly oil market report on Wednesday.Fed Chair Jerome Powell speaks on WednesdayU.S. weekly jobless claims data is due Thursday.China on Friday releases industrial production and retail sales data for April.These are some of the main moves in markets:StocksThe Stoxx Europe 600 Index fell 1.3% as of 8:17 a.m. London time.Futures on the S&P 500 Index gained 0.1%.Germany’s DAX Index dipped 1.7%.India’s Sensex Index jumped 2%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro was little changed at $1.0846.The British pound increased 0.2% to $1.228.The Japanese yen strengthened 0.1% to 107.07 per dollar.BondsThe yield on 10-year Treasuries gained less than one basis point to 0.67%.Germany’s 10-year yield fell two basis points to -0.52%.Britain’s 10-year yield declined two basis points to 0.226%.New Zealand’s 10-year yield decreased 12 basis points to 0.626%.CommoditiesWest Texas Intermediate crude fell 0.5% to $25.65 a barrel.Gold was little changed at $1,703.51 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
https://finance.yahoo.com/news/asia-stocks-open-lower-u-213531394.html?.tsrc=rss
