U.S. Futures, Europe Stocks Struggle; Gold Climbs: Markets Wrap - Yahoo Finance

U.S. Futures, Europe Stocks Struggle; Gold Climbs: Markets Wrap

(Bloomberg) -- Stocks in Europe edged lower with U.S. equity futures after steep declines in Asia as investors kicked off the busy week in a cautious mood.

Declines in healthcare and utility shares led the Stoxx Europe 600 Index down, with Deutsche Bank surrendering earlier gains sparked after the lender announced plans to cut its workforce by one-fifth. S&P 500 and Nasdaq contracts dipped. Asian equities saw a saw sharp retreat, with technology stocks taking a hit from fresh tensions between Japan and South Korea over export restrictions on semiconductor materials. The euro was steady after German industrial production data just missed expectations. Greek bonds rose amid hope a new government elected over the weekend will prove to be market-friendly. Gold advanced, and the Treasury 10-year note yield ticked down toward 2%.

Turkey’s lira slipped after President Recep Tayyip Erdogan’s shock decision to replace the country’s central bank governor fueled concerns over whether the regulator will lower borrowing costs more than expected.

The week is stacked with both central banker speeches and key data. All eyes will be on Federal Reserve Chairman Jerome Powell as he speaks to Congress just days after the latest labor report delivered signs the American economy remains on track.

U.S. stocks hit a record last week and a bond rally took yields to multiyear 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.

“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 decreased 0.2% as of 10:23 a.m. London time.The Stoxx Europe 600 Index dipped 0.1%.The U.K.’s FTSE 100 Index declined 0.1%, the lowest in a week.Germany’s DAX Index fell 0.2%.The MSCI Asia Pacific Index declined 1.2%, the lowest in more than a week on the largest drop in two months.

Currencies

The Bloomberg Dollar Spot Index declined less than 0.05%.The euro increased less than 0.05% to $1.1226.The British pound gained 0.1% to $1.2529, the biggest gain in more than a week.The Japanese yen advanced less than 0.05% to 108.43 per dollar.

Bonds

The yield on 10-year Treasuries dipped one basis point to 2.03%.Britain’s 10-year yield fell three basis points to 0.711%.Germany’s 10-year yield declined one basis point to -0.37%.

Commodities

Gold advanced 0.5% to $1,405.83 an ounce.West Texas Intermediate crude dipped 0.1% to $57.48 a barrel.

--With assistance from Emily Barrett.

To contact the reporter on this story: 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

©2019 Bloomberg L.P.

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2019-07-08 09:33:00Z
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