Europe Stocks, U.S. Futures Shrug off Asia Slump: Markets Wrap - Yahoo Finance

Europe Stocks, U.S. Futures Shrug off Asia Slump: Markets Wrap

(Bloomberg) -- European stocks drifted and U.S. equity futures dipped on Monday, largely shrugging off steep declines in Asia as investors kick off the busy week in a cautious mood.

The Stoxx Europe 600 was mixed while S&P 500 contracts pared an earlier drop, following a sharp retreat across the Asian region, where Shanghai and Seoul bore the brunt of the losses. Technology stocks in Asia underperformed amid the fallout from Japan’s export controls on certain Korean semiconductor materials, while concern that a flood of new listings will overload the market weighed in China. The euro was steady after German industrial production data just missed expectations and as Deutsche Bank’s shares climbed after it announced plans to cut the workforce by one-fifth. The Treasury 10-year note yield ticked down toward 2%.

Meanwhile, Turkish assets were in focus after President Recep Tayyip Erdogan’s shock decision to replace the country’s central bank governor fueled concern the regulator will lower borrowing costs more than expected. The lira slid.

It’s a week stacked with both central banker speeches and key data. The headline event for most investors will be Federal Reserve Chairman Jerome Powell. Despite the trade war and fragile global growth, the latest American labor report delivered signs the economy remains on track. U.S. stocks hit a record last week and a bond rally took yields to multi-year lows amid expectations the Fed will lower interest rates by at least a quarter percentage point at its July meeting, though fed fund futures showed traders trimming the amount of easing they expect as Friday’s strong jobs report cast doubt on the future pace of rate cuts.

“The testimony this week will be crucial around how they are seeing the evolution of the U.S. economy,” Anne Anderson, head of fixed income at UBS Asset Management in Sydney, told Bloomberg TV. “It’s a matter of finding the balance between not scaring people that there’s something deleterious going on, but moving ahead of the curve.”

Elsewhere, oil fluctuated as geopolitical risks remained high after Iran threatened to breach the levels of uranium enrichment under the 2015 nuclear accord.

Here are some key events coming up:

U.K. Conservative Party members start voting on Monday to choose Theresa May’s successor. Front-runner Boris Johnson and Jeremy Hunt will appear at events through the week to try and secure votes, including a TV debate on July 9.Federal Reserve Chairman Jerome Powell testifies before Congress on monetary policy and the state of the U.S. economy on Wednesday and Thursday.Fed minutes are due on Wednesday, ECB minutes on Thursday. A key measure of U.S. inflation, the core consumer price index, is expected to have increased 0.2% in June from the prior month, while the broader CPI is forecast to remain unchanged. U.S. producer prices are due on Friday.

Here are the main moves in markets:

Stocks

Futures on the S&P 500 Index declined 0.1% as of 8:19 a.m. London time.The Stoxx Europe 600 Index climbed 0.1%.The U.K.’s FTSE 100 Index increased 0.1%.The MSCI Asia Pacific Index fell 1.2% to the lowest in more than a week.

Currencies

The Bloomberg Dollar Spot Index dipped less than 0.05%.The euro decreased less than 0.05% to $1.1224, the weakest in almost three weeks.The British pound declined 0.1% to $1.2513, the weakest in seven months.The Japanese yen advanced 0.1% to 108.36 per dollar.

Bonds

The yield on 10-year Treasuries decreased one basis point to 2.02%.Germany’s 10-year yield dipped two basis points to -0.38%.Britain’s 10-year yield declined three basis points to 0.707%.

Commodities

Gold increased 0.5% to $1,406.58 an ounce.West Texas Intermediate crude climbed 0.3% to $57.71 a barrel, the highest in a week.

--With assistance from Emily Barrett.

To contact the reporters on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.net;Laura Curtis in London at lcurtis7@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Todd White

For more articles like this, please visit us at bloomberg.com

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2019-07-08 07:30:00Z
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