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Stocks, U.S. Futures Drop; Dollar Extends Gain: Markets Wrap
(Bloomberg) -- Asian stocks as well as U.S. and European futures came under pressure Thursday after Federal Reserve minutes signaled tempered optimism about second-half growth and Sino-American tensions simmered. The dollar continued to rebound.Stocks fell in Japan, China and Australia, with Hong Kong and South Korean shares underperforming. A drop in S&P 500 futures signaled Wednesday’s weakness may continue after the Fed noted the health crisis would “weigh heavily” on economic activity and repeated its view that the recovery path depends on virus containment. The greenback built on gains that came after a five-day selloff. Gold pared an overnight fall. Treasury yields ticked lower.Global equities are seeing weakness as investors debate whether momentum that pushed the S&P 500 to a record high this week can be sustained amid lofty valuations and uncertainties over further government stimulus. Fed officials said the virus was posing a considerable risk to the economic outlook over the medium term. A gauge of Asian stocks fell the most in about three weeks.“There is still a fair amount of uncertainty around the path of the coronavirus, through the flu season, and what that may mean for economic growth,” Jim McDonald, chief investment strategist at Northern Trust, said on Bloomberg TV. “Stocks are somewhat expensive here -- we struggle to get to a meaningful positive return on stocks over the next year just because we’ve priced in so much of a recovery already.”Democratic and Republican leaders are hinting that they are looking for a path toward reviving stalled negotiations on the next round of pandemic relief -- even as both sides remain far from a deal. Any accord is still likely to wait until September despite the fact that the U.S. economy is limping along with many businesses still struggling and millions of Americans out of work.Meanwhile, the U.S. announced it is suspending its extradition treaty with Hong Kong and ending reciprocal tax treatment with the former British colony, the latest salvo in escalating tensions between Washington and Beijing.Elsewhere, oil slipped from a five-month high. The OPEC+ alliance urged members to adhere to limiting output as the coronavirus pandemic threatens a demand recovery.Here are some key events coming up:Results from Alibaba Group Holding Ltd. are due Thursday.U.S. jobless claims for the week ended Aug. 15 are due Thursday.Euro-area PMIs will be released on Friday.These are some of the main moves in markets:StocksS&P 500 futures lost 0.7% as of 12:02 p.m. in Tokyo. The index dipped 0.4% Wednesday.Japan’s Topix Index fell 0.5%.Hong Kong’s Hang Seng dropped 1.7%.Shanghai Composite lost 0.6%.Kospi index fell 2.8%.Australia’s S&P/ASX 200 Index declined 1.1%.Euro Stoxx 50 futures fell 1.5%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%.The euro bought $1.1843, little changed.The yen was steady at 106.09 per dollar.The offshore yuan traded at 6.9189 per dollar.BondsThe yield on 10-year Treasuries decreased one basis point to 0.67%.Australia’s 10-year yield remained at 0.86%.CommoditiesWest Texas Intermediate crude fell 1% to $42.49 a barrel.Gold rose 0.9% to $1,946.12 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/dollar-rebounds-fed-asian-futures-214722097.html?.tsrc=rss
(Bloomberg) -- Asian stocks as well as U.S. and European futures came under pressure Thursday after Federal Reserve minutes signaled tempered optimism about second-half growth and Sino-American tensions simmered. The dollar continued to rebound.Stocks fell in Japan, China and Australia, with Hong Kong and South Korean shares underperforming. A drop in S&P 500 futures signaled Wednesday’s weakness may continue after the Fed noted the health crisis would “weigh heavily” on economic activity and repeated its view that the recovery path depends on virus containment. The greenback built on gains that came after a five-day selloff. Gold pared an overnight fall. Treasury yields ticked lower.Global equities are seeing weakness as investors debate whether momentum that pushed the S&P 500 to a record high this week can be sustained amid lofty valuations and uncertainties over further government stimulus. Fed officials said the virus was posing a considerable risk to the economic outlook over the medium term. A gauge of Asian stocks fell the most in about three weeks.“There is still a fair amount of uncertainty around the path of the coronavirus, through the flu season, and what that may mean for economic growth,” Jim McDonald, chief investment strategist at Northern Trust, said on Bloomberg TV. “Stocks are somewhat expensive here -- we struggle to get to a meaningful positive return on stocks over the next year just because we’ve priced in so much of a recovery already.”Democratic and Republican leaders are hinting that they are looking for a path toward reviving stalled negotiations on the next round of pandemic relief -- even as both sides remain far from a deal. Any accord is still likely to wait until September despite the fact that the U.S. economy is limping along with many businesses still struggling and millions of Americans out of work.Meanwhile, the U.S. announced it is suspending its extradition treaty with Hong Kong and ending reciprocal tax treatment with the former British colony, the latest salvo in escalating tensions between Washington and Beijing.Elsewhere, oil slipped from a five-month high. The OPEC+ alliance urged members to adhere to limiting output as the coronavirus pandemic threatens a demand recovery.Here are some key events coming up:Results from Alibaba Group Holding Ltd. are due Thursday.U.S. jobless claims for the week ended Aug. 15 are due Thursday.Euro-area PMIs will be released on Friday.These are some of the main moves in markets:StocksS&P 500 futures lost 0.7% as of 12:02 p.m. in Tokyo. The index dipped 0.4% Wednesday.Japan’s Topix Index fell 0.5%.Hong Kong’s Hang Seng dropped 1.7%.Shanghai Composite lost 0.6%.Kospi index fell 2.8%.Australia’s S&P/ASX 200 Index declined 1.1%.Euro Stoxx 50 futures fell 1.5%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%.The euro bought $1.1843, little changed.The yen was steady at 106.09 per dollar.The offshore yuan traded at 6.9189 per dollar.BondsThe yield on 10-year Treasuries decreased one basis point to 0.67%.Australia’s 10-year yield remained at 0.86%.CommoditiesWest Texas Intermediate crude fell 1% to $42.49 a barrel.Gold rose 0.9% to $1,946.12 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/dollar-rebounds-fed-asian-futures-214722097.html?.tsrc=rss
