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Stock Futures Drift Lower; Dollar Adds to Gains: Markets Wrap
(Bloomberg) -- U.S. and European futures drifted lower with Asian stocks, and the dollar extended recent gains, amid concerns that a renewed pick-up in virus infections makes it tougher to justify current valuations.Equities fell in Hong Kong and Sydney, with more modest declines in Tokyo, Seoul and Shanghai. S&P 500 futures slipped after the index closed flat Monday. South Korea reported a flare-up in virus cases, underscoring concerns about a second wave of infections. Investors are also wary of strained U.S.-China trade relations -- the Trump administration moved on Monday night to block investments in Chinese stocks by a government retirement savings fund. Treasury yields dipped and the yen rose.Global equities have recouped almost half of the plunge from their March 23 low, but the sustainability of the rally remains in question amid poor company earnings and data as countries begin to unwind lockdowns that froze economic activity. Goldman Sachs Group Inc. warned yhat investors had gotten ahead of themselves and that the S&P 500 Index might drop almost 20% in the next three months.“We have entered into a phase of consolidation where the market looks for clarity in economic trends before loading up again,” said Sebastien Galy, senior macro strategist at Nordea Investment Funds SA. “Time will eventually do the magic,” though the wild card is U.S.-China tensions, he said, judging that markets have under-priced the risk of a failed bilateral trade deal.Meantime, Wuhan, where the epidemic began, reported its first new infections since the Chinese city ended its lockdown last month. Russia reported a record number of new cases in one day as it emerged as a new hub of the outbreak in Europe, though the spread slowed elsewhere on the continent.Here are some key events coming up:Earnings continue to roll in from companies including Tencent, Allianz, and Petrobras.Regional Federal Reserve presidents James Bullard, Loretta Mester and Patrick Harker are due to speak at events on Tuesday.OPEC gives its monthly oil market report on Wednesday.U.S. weekly jobless claims data is due Thursday.China on Friday releases industrial production and retail sales data for April.These are the main moves in markets:StocksS&P 500 futures fell 0.5% as of 7 a.m. in London. The S&P 500 was little changed in New York Monday.Topix index dipped 0.3%.Australia’s S&P/ASX 200 Index dropped 1%.South Korea’s Kospi index lost 0.2%.Hang Seng Index lost 1.5%Shanghai Composite Index fell 0.2%.Euro Stoxx 50 futures slipped 0.2%.CurrenciesThe yen rose 0.2% to 107.43 per dollar.The offshore yuan was at 7.1050 per dollar.The Bloomberg Dollar Spot Index gained 0.1%.The euro bought $1.0811, little changed.BondsThe yield on 10-year Treasuries fell two basis points to 0.69%.The yield on Australia’s 10-year bond held at 0.96%.CommoditiesWest Texas Intermediate crude gained 1.3% to $24.48 a barrel.Gold added 0.2% to $1,701.28 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-set-mixed-start-220634364.html?.tsrc=rss
(Bloomberg) -- U.S. and European futures drifted lower with Asian stocks, and the dollar extended recent gains, amid concerns that a renewed pick-up in virus infections makes it tougher to justify current valuations.Equities fell in Hong Kong and Sydney, with more modest declines in Tokyo, Seoul and Shanghai. S&P 500 futures slipped after the index closed flat Monday. South Korea reported a flare-up in virus cases, underscoring concerns about a second wave of infections. Investors are also wary of strained U.S.-China trade relations -- the Trump administration moved on Monday night to block investments in Chinese stocks by a government retirement savings fund. Treasury yields dipped and the yen rose.Global equities have recouped almost half of the plunge from their March 23 low, but the sustainability of the rally remains in question amid poor company earnings and data as countries begin to unwind lockdowns that froze economic activity. Goldman Sachs Group Inc. warned yhat investors had gotten ahead of themselves and that the S&P 500 Index might drop almost 20% in the next three months.“We have entered into a phase of consolidation where the market looks for clarity in economic trends before loading up again,” said Sebastien Galy, senior macro strategist at Nordea Investment Funds SA. “Time will eventually do the magic,” though the wild card is U.S.-China tensions, he said, judging that markets have under-priced the risk of a failed bilateral trade deal.Meantime, Wuhan, where the epidemic began, reported its first new infections since the Chinese city ended its lockdown last month. Russia reported a record number of new cases in one day as it emerged as a new hub of the outbreak in Europe, though the spread slowed elsewhere on the continent.Here are some key events coming up:Earnings continue to roll in from companies including Tencent, Allianz, and Petrobras.Regional Federal Reserve presidents James Bullard, Loretta Mester and Patrick Harker are due to speak at events on Tuesday.OPEC gives its monthly oil market report on Wednesday.U.S. weekly jobless claims data is due Thursday.China on Friday releases industrial production and retail sales data for April.These are the main moves in markets:StocksS&P 500 futures fell 0.5% as of 7 a.m. in London. The S&P 500 was little changed in New York Monday.Topix index dipped 0.3%.Australia’s S&P/ASX 200 Index dropped 1%.South Korea’s Kospi index lost 0.2%.Hang Seng Index lost 1.5%Shanghai Composite Index fell 0.2%.Euro Stoxx 50 futures slipped 0.2%.CurrenciesThe yen rose 0.2% to 107.43 per dollar.The offshore yuan was at 7.1050 per dollar.The Bloomberg Dollar Spot Index gained 0.1%.The euro bought $1.0811, little changed.BondsThe yield on 10-year Treasuries fell two basis points to 0.69%.The yield on Australia’s 10-year bond held at 0.96%.CommoditiesWest Texas Intermediate crude gained 1.3% to $24.48 a barrel.Gold added 0.2% to $1,701.28 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-set-mixed-start-220634364.html?.tsrc=rss
