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Stocks, Futures Slump on Fed Caution, Virus Fears: Markets Wrap
(Bloomberg) -- Stocks in Europe and Asia tumbled with U.S. equity futures on Thursday as fears of a second wave of the virus and a cautious outlook from the Federal Reserve clouded hopes for a speedy economic recovery.The Stoxx Europe 600 Index sank, with sectors scooped up in the recent rally such as banks and travel leading declines. S&P 500 contracts extended their losses by as much as 2% the day after Fed Chairman Jerome Powell suggested the pandemic could inflict long-lasting damage on the economy, and amid concern over coronavirus infection rates jumping in parts of America.Treasuries continued higher alongside German bunds on haven demand, while the dollar rebounded from Wednesday’s losses.“This is the first time we’ve had a little bit of negative newsflow recently” on developments in the coronavirus, Dean Turner, economist at UBS Global Wealth Management, told Bloomberg TV. “Put that in the context of how far markets have come in the last few weeks, it’s not at all surprising that we get a little bit of profit-taking at this stage.”Stocks are catching their breath after a strong rally from March lows as investors weigh a rocky road to economic recovery against promised stimulus measures. U.S. virus cases now top 2 million, with fears of a second wave in Texas and Florida. Treasury Secretary Steve Mnuchin said the U.S. “definitely” needs more fiscal stimulus, supporting prospects for another round this summer. European policy makers meet Thursday on whether to boost aid.Markets are shifting while investors digest the Fed’s decision to leave its policy settings unchanged while pledging to keep buying bonds. Powell said the central bank had a briefing on yield-curve control, amid expectations from some economists that the central bank will follow Australia’s and Japan’s in adopting such a tool.Elsewhere, Japanese and Australia benchmarks led a broad decline among Asia equity markets. Crude oil declined while gold held onto most of Wednesday’s gain.What to watch this week:Euro-area finance ministers meet Thursday to discuss the EU’s recovery package and Eurogroup presidency succession.These are some of the main moves in markets:StocksFutures on the S&P 500 Index decreased 1.6% as of 10:18 a.m. London time.The Stoxx Europe 600 Index sank 2.3%.The MSCI Asia Pacific Index declined 1.8%.The MSCI Emerging Market Index declined 1.1%.CurrenciesThe Bloomberg Dollar Spot Index jumped 0.3%.The euro increased 0.1% to $1.139.The British pound sank 0.4% to $1.2699.The onshore yuan weakened 0.1% to 7.066 per dollar.The Japanese yen strengthened 0.2% to 106.86 per dollar.BondsThe yield on 10-year Treasuries fell four basis points to 0.69%.The yield on two-year Treasuries climbed less than one basis point to 0.17%.Germany’s 10-year yield decreased six basis points to -0.39%.Britain’s 10-year yield fell five basis points to 0.219%.Japan’s 10-year yield dipped one basis point to 0.011%.CommoditiesWest Texas Intermediate crude declined 3.4% to $38.24 a barrel.Brent crude dipped 3.1% to $40.43 a barrel.Gold weakened 0.3% to $1,734.35 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-slip-dollar-declines-213413491.html?.tsrc=rss
(Bloomberg) -- Stocks in Europe and Asia tumbled with U.S. equity futures on Thursday as fears of a second wave of the virus and a cautious outlook from the Federal Reserve clouded hopes for a speedy economic recovery.The Stoxx Europe 600 Index sank, with sectors scooped up in the recent rally such as banks and travel leading declines. S&P 500 contracts extended their losses by as much as 2% the day after Fed Chairman Jerome Powell suggested the pandemic could inflict long-lasting damage on the economy, and amid concern over coronavirus infection rates jumping in parts of America.Treasuries continued higher alongside German bunds on haven demand, while the dollar rebounded from Wednesday’s losses.“This is the first time we’ve had a little bit of negative newsflow recently” on developments in the coronavirus, Dean Turner, economist at UBS Global Wealth Management, told Bloomberg TV. “Put that in the context of how far markets have come in the last few weeks, it’s not at all surprising that we get a little bit of profit-taking at this stage.”Stocks are catching their breath after a strong rally from March lows as investors weigh a rocky road to economic recovery against promised stimulus measures. U.S. virus cases now top 2 million, with fears of a second wave in Texas and Florida. Treasury Secretary Steve Mnuchin said the U.S. “definitely” needs more fiscal stimulus, supporting prospects for another round this summer. European policy makers meet Thursday on whether to boost aid.Markets are shifting while investors digest the Fed’s decision to leave its policy settings unchanged while pledging to keep buying bonds. Powell said the central bank had a briefing on yield-curve control, amid expectations from some economists that the central bank will follow Australia’s and Japan’s in adopting such a tool.Elsewhere, Japanese and Australia benchmarks led a broad decline among Asia equity markets. Crude oil declined while gold held onto most of Wednesday’s gain.What to watch this week:Euro-area finance ministers meet Thursday to discuss the EU’s recovery package and Eurogroup presidency succession.These are some of the main moves in markets:StocksFutures on the S&P 500 Index decreased 1.6% as of 10:18 a.m. London time.The Stoxx Europe 600 Index sank 2.3%.The MSCI Asia Pacific Index declined 1.8%.The MSCI Emerging Market Index declined 1.1%.CurrenciesThe Bloomberg Dollar Spot Index jumped 0.3%.The euro increased 0.1% to $1.139.The British pound sank 0.4% to $1.2699.The onshore yuan weakened 0.1% to 7.066 per dollar.The Japanese yen strengthened 0.2% to 106.86 per dollar.BondsThe yield on 10-year Treasuries fell four basis points to 0.69%.The yield on two-year Treasuries climbed less than one basis point to 0.17%.Germany’s 10-year yield decreased six basis points to -0.39%.Britain’s 10-year yield fell five basis points to 0.219%.Japan’s 10-year yield dipped one basis point to 0.011%.CommoditiesWest Texas Intermediate crude declined 3.4% to $38.24 a barrel.Brent crude dipped 3.1% to $40.43 a barrel.Gold weakened 0.3% to $1,734.35 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-slip-dollar-declines-213413491.html?.tsrc=rss
