Stocks Slide on Mideast Angst; Gold Jumps With Oil: Markets Wrap

NewsFeeder

Headline News
Stocks Slide on Mideast Angst; Gold Jumps With Oil: Markets Wrap

(Bloomberg) -- Stocks extended their losses and oil built on gains as investors continued to grapple with the fallout from a U.S. airstrike that killed a powerful Iranian general. Havens climbed, with gold surging to the highest in more than six years.The Stoxx Europe 600 Index dropped for a second session as the security situation in the Middle East appeared to deteriorate over the weekend, with Iran saying it would no longer abide by any limits on its enrichment of uranium. President Donald Trump said the U.S. had identified 52 Iranian sites it would hit if Tehran retaliates. Futures for the main American equity gauges also retreated while most shares in Asia declined.The yen matched a three-month high, while Treasuries edged higher following last week’s jump. Brent crude traded around $70 a barrel as oil extended Friday’s surge. The euro strengthened a little after data showed the region’s economy edged away from stagnation at the end of 2019.The sudden escalation of tensions in the Middle East continues to damp the enthusiasm that sent the S&P 500 Index to a record on its first trading day of the year. Investors looking ahead to the planned signing of a U.S.-China phase-one trade deal later this month were rattled by the American strike on Iranian General Qassem Soleimani, which served as a reminder that markets remain vulnerable to geopolitics.“Everyone got comfortable in that fact that the truce in the trade war had come through and the outlook for 2020 looked a little bit better and then we had another geopolitical reminder come through,” said Suncorp Group Financial Market Strategist Peter Dragicevich. “It’s going to be a big driver of markets in the short term.”In the latest developments, Trump doubled down on threats to Iran and vowed to slap sanctions on Iraq if U.S. troops were expelled from the country.Here are some events to watch for this week:Federal Reserve officials Richard Clarida, John Williams, James Bullard and Charles Evans speak on Thursday.The U.S. monthly employment report is due Friday.These are moves in major markets:StocksFutures on the S&P 500 Index fell 0.7% as of 9:24 a.m. London time.The Stoxx Europe 600 Index sank 1.2%.The MSCI Asia Pacific Index declined 1%.The MSCI Emerging Market Index fell 1.1%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%.The euro advanced 0.1% to $1.1177.The British pound jumped 0.3% to $1.3121.The onshore yuan decreased 0.1% to 6.974 per dollar.The Japanese yen climbed 0.1% to 107.97 per dollar.BondsThe yield on 10-year Treasuries fell one basis point to 1.78%.The yield on two-year Treasuries decreased less than one basis point to 1.52%.Germany’s 10-year yield sank two basis points to -0.30%.Britain’s 10-year yield dipped one basis point to 0.731%.Japan’s 10-year yield fell one basis point to -0.02%.CommoditiesWest Texas Intermediate crude increased 1.4% to $63.93 a barrel.Iron ore climbed 0.3% to $92.75 per metric ton.Gold surged 1.6% to $1,576.51 an ounce.\--With assistance from Joanna Ossinger and Andreea Papuc.To contact the reporter on this story: Yakob Peterseil in London at ypeterseil@bloomberg.netTo contact the editor responsible for this story: Sam Potter at spotter33@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

https://finance.yahoo.com/news/yen-jumps-asia-futures-dip-214727157.html?.tsrc=rss
 
Back
Top