U.S. Stock Futures Decline as Hong Kong Sours Mood: Markets Wrap - Yahoo Finance

U.S. Stock Futures Decline as Hong Kong Sours Mood: Markets Wrap

(Bloomberg) -- U.S. equity futures reversed a gain on Monday while European stocks erased an advance as mounting unrest in Hong Kong weighed on investor sentiment. Treasuries and the yen extended their increase while gold and the dollar both turned higher.

Contracts for all three main U.S. equity indexes retreated as Hong Kong airport authorities canceled remaining flights for the day and a Chinese official said the city was at a “critical juncture,” and that there were signs of “terrorism.” The change in mood wiped out the Stoxx Europe 600 Index’s jump of as much as 1%. Stocks had increased in Shanghai and edged higher in South Korea and Sydney, though Hong Kong shares dropped and many other markets across Asia were shut for a holiday.

The yen extended its rally for a fourth day, while the yuan nudged lower as China’s central bank fixing continued to signal its determination to manage an orderly depreciation. Italian bonds led gains in European debt after Fitch affirmed the country’s credit rating on Friday. The pound strengthened following three sessions of declines.

The Monday reversals are another reminder of the fragile mood across markets, which have endured a tumultuous start to August. Gains for the safest government bonds point to a lot of lingering caution. Traders have been increasing bets for central bank easing in recent weeks as the U.S. and China escalate their trade war and a slew of global data point to slowing growth.

“We remain cautious, as we believe that a number of challenges remain,” said Andrew Sheets, chief cross asset strategist at Morgan Stanley in London. “Among them, the risk that high policy expectations make disappointment more likely, and that even if those aggressive expectations are met, easing isn’t expected to improve growth or inflation materially.”

Elsewhere, the South Korean won extended declines as data signaled exports are set to drop for a ninth straight month in August as the impact of the U.S.-China trade spat spreads. Argentina’s euro-denominated bonds slid in early trading after President Mauricio Macri’s poor showing in primary elections on Sunday.

Here are some key events coming up:

Companies releasing results include Barrick Gold, China’s Tencent, JD.com and Alibaba, Cisco, Brazilian utility Eletrobras, the U.K.’s Prudential, Australia’s Telstra, giant retailer Walmart, Nvidia, Swisscom and the Danish brewer Carlsberg.The U.S. consumer price index, out Tuesday, probably picked up to a 1.7% annual pace in July, according to economist estimates. Core prices, which exclude food and energy, are seen rising 2.1%.Wednesday brings data on China retail sales, industrial production and the jobless rate.Thursday sees the release of U.S. jobless claims, industrial production and retail sales data.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index declined 0.4% as of 9:59 a.m. London time.The Stoxx Europe 600 Index was little changed.The MSCI Asia Pacific Index dipped 0.1%.The Shanghai Composite Index surged 1.5%.

Currencies

The Bloomberg Dollar Spot Index climbed 0.2%.The onshore yuan decreased less than 0.05%.The euro decreased 0.2% to $1.1176.The Japanese yen rose 0.4% to 105.28 per dollar.The British pound gained 0.3% to $1.2065.

Bonds

The yield on 10-year Treasuries fell six basis points to 1.69%.Britain’s 10-year yield climbed less than one basis point to 0.487%.The spread of Italy’s 10-year bonds over Germany’s declined four basis points to 2.341 percentage points.Germany’s 10-year yield dipped two basis points to -0.59%.

Commodities

Gold climbed 0.4% to $1,502.25 an ounce.West Texas Intermediate crude fell 1.5% to $53.70 a barrel.LME aluminum gained 0.8%.Iron ore dipped 0.7% to $88.43 per metric ton.

--With assistance from Luke Kawa and Adam Haigh.

To contact the reporter on this story: Samuel Potter in London at spotter33@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.

Let's block ads! (Why?)

https://finance.yahoo.com/news/stocks-dip-u-drop-caution-212247519.html

2019-08-12 09:04:00Z
CBMiR2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9zdG9ja3MtZGlwLXUtZHJvcC1jYXV0aW9uLTIxMjI0NzUxOS5odG1s0gFPaHR0cHM6Ly9maW5hbmNlLnlhaG9vLmNvbS9hbXBodG1sL25ld3Mvc3RvY2tzLWRpcC11LWRyb3AtY2F1dGlvbi0yMTIyNDc1MTkuaHRtbA

Bagikan Berita Ini