(Bloomberg) -- U.S. stocks were poised to drop at the open as Wall Street resumes trading after the long weekend, while equities in Europe and Asia also declined as investors weighed receding chances for fresh China talks this month. Treasuries advanced, while the pound sank against the dollar as Brexit brinkmanship raised the possibility of an early election in the U.K.
Treasuries joined a rally in sovereign bonds across Europe, as equities faltered in most markets. A gauge of the dollar ratcheted up for a seventh straight session. Declines in retail and mining shares led the Stoxx Europe 600 index lower. Earlier in Asia, shares fell in most of the region, though they saw modest gains in Tokyo and Shanghai. Gold climbed.
The pound dipped below $1.20 for the first time since 2017 after Prime Minister Boris Johnson threatened to call a general election rather than acquiesce to a potential Parliamentary demand that he request another postponement for the U.K.’s departure from the European Union.
September is off to a rocky start for risk assets as traders remain sensitive to the twists and turns of the Sino-U.S. trade war. With mistrust on both sides, officials from the world’s two largest economies are struggling to agree on basic terms of re-engagement and even when to hold meetings planned for this month. Violent confrontations in Hong Kong are also weighing on sentiment.
Elsewhere, West Texas-grade crude oil slipped toward $54 a barrel amid concerns an economic slowdown from the trade war may dent demand. Forecasters are looking for signs a weakening Hurricane Dorian will turn north from the Bahamas rather than slamming head on into Florida.
Here are some key events coming up:
- British members of Parliament will start debating an emergency plan to take control of the legislature’s business on Tuesday evening in London.
- Fed speakers include New York Fed’s John Williams on Wednesday and Fed chair Jerome Powell on Friday.
- The U.S. jobs report on Friday is projected to show the widely watched nonfarm payrolls rose by 158,000 in August, versus 164,000 the month prior. Estimates are for unemployment to be steady at 3.7% and the average hourly earnings rate of increase to slow to 3.0%.
These are the main moves in markets:
(All comparisons are with Monday prices, except U.S. futures, Treasuries, copper and crude oil which are compared with Friday.)
Stocks
- The Stoxx Europe 600 Index dipped 0.4% as of 6:23 a.m. New York time.
- Futures on the S&P 500 Index dipped 0.9%.
- The MSCI Asia Pacific Index fell 0.3%.
Currencies
- The Bloomberg Dollar Spot Index gained 0.2%.
- The euro fell 0.2% to $1.094.
- The British pound sank 0.6% to $1.1992.
- The Japanese yen strengthened 0.2% to 106.07 per dollar.
- The MSCI Emerging Markets Currency Index fell 0.3%.
Bonds
- Britain’s 10-year yield dipped five basis points to 0.362%.
- The yield on 10-year Treasuries declined two basis points to 1.48%.
- The yield on 2-year Treasuries fell one basis point to 1.50%
Commodities
- West Texas Intermediate crude declined 1.7% to $54.16 a barrel.
- Copper declined 2.1% to $2.50 a pound.
--With assistance from April Ma, Andreea Papuc and Francine Lacqua.
To contact the reporter on this story: Todd White in Madrid at twhite2@bloomberg.net
To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Laura Curtis
©2019 Bloomberg L.P.
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2019-09-03 08:41:00Z
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