(Bloomberg) -- U.S. stocks fell and Treasuries rose as investors sought clarity on the latest trade policy from the Trump administration and digested the latest jobs report.
S&P 500 headed for its fifth straight decline as traders sifted through reports on the latest trade discussions after President Donald Trump said Thursday he would slap new tariffs on Chinese goods. Ten-year Treasury yields held near the lowest level since 2016 after U.S. employers added jobs generally in line with expectations and wage data showed gains. The dollar advanced against major currencies.
European and Asian stocks slumped and bonds rallied after China pledged “countermeasures” if the U.S. steps up tariffs on its goods.
“If you want to put a multiplier to this week’s events - the tariff has a 100 next to it, and the jobs report has a 2 next to it,” Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co said. “We were at 2,943 for the S&P futures pre-report, we’re at 2,939 now. People would point to a wage component being a positive, but it’s only a very small beat, that would be what bulls on the economy would point to. But I don’t see it enough in this to change people’s perception on what’s going to happen in September. Average hourly earnings aren’t at a point where inflation is a real issue.”
The jobs report adds another piece to an already large puzzle that includes the Fed, earnings and trade. While China has yet to offer details on what measures it would take, the sudden escalation of the spat has put markets in a spin in an already action-packed week of corporate earnings and central-bank meetings. The developments come after the Federal Reserve chief cast doubt about a long cycle of interest-rate cuts, provoking the president’s ire and disappointing many investors.
Elsewhere, crude oil clawed back some of its 8% slide on Thursday. Gold gave up some of the previous day’s gains. Most European government bonds rose alongside the common currency. The pound drifted after a by-election loss reduced U.K. Prime Minister Boris Johnson’s House of Commons majority to a single seat.
Here are some of the key events to watch as the week unfolds:
The U.S. July jobs report is due Friday.
And here are the main moves in markets (all sizes and scopes are on a closing basis):
Stocks
The S&P 500 Index dipped 0.3% as of 9:33 a.m. New York time.The Stoxx Europe 600 Index sank 1.8%, the biggest tumble in eight months.The U.K.’s FTSE 100 Index sank 1.8%, the largest tumble in 19 weeks.The MSCI Asia Pacific Index sank 1.4%, the lowest in more than six weeks.
Currencies
The Bloomberg Dollar Spot Index rose 0.9%The euro was steady at $1.1085.The British pound fell 0.1% at $1.2122.The Japanese yen climbed 0.5% to 106.78 per dollar.
Bonds
The yield on 10-year Treasuries dipped three basis points to 1.87%.Britain’s 10-year yield declined four basis points to 0.553%.Germany’s 10-year yield declined four basis points to -0.49%, reaching the lowest on record.
Commodities
Gold dipped 1.1% to $1,448.80 an ounce.West Texas Intermediate crude climbed 2.2% to $55.15 a barrel.
--With assistance from Cormac Mullen.
To contact the reporters on this story: Laura Curtis in London at lcurtis7@bloomberg.net;Randall Jensen in New York at rjensen18@bloomberg.net
To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Namitha Jagadeesh
For more articles like this, please visit us at bloomberg.com
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https://finance.yahoo.com/news/asia-stocks-set-slide-fresh-220544001.html
2019-08-02 13:19:00Z
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