BackGlobal stocks decline as US yields rise, dollar steady
Stocks in Europe fell along with U.S. equity-index futures as Treasury yields resumed their upward march, rounding out a tough week when a rout in technology shares roiled Asian equity markets
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Stocks in Europe fell along with U.S. equity-index futures as Treasury yields resumed their upward march, rounding out a tough week when a rout in technology shares roiled Asian equity markets. The dollar steadied ahead of the American payrolls report.
Miners led a drop in the Stoxx Europe 600 index as metal prices fell, while gauges of technology and banking companies also slipped. Tech shares led declines in Asia earlier after Bloomberg reported that China infiltrated U.S. companies with hardware hacks. Chinese PC maker Lenovo Group Ltd. dropped as much as 23 percent in Hong Kong. In Europe, Danske Bank A/S headed for the biggest plunge in seven years after Denmark’s regulator said it should hold more capital to prepare for potential fines.
The euro pared a decline after German factory orders and producer-price data beat estimates. Italian bonds slipped as GDP forecasts failed to convince investors the country will be able to meet fiscal targets, while German bunds led core European debt lower. The pound rallied and gilts fell on renewed optimism that the U.K. is moving closer to a Brexit deal with the European Union.
The tech rout is the latest blow for global stocks in a week that saw 10-year U.S. Treasury yields climb to to seven-year highs, reducing demand for riskier assets. Federal Reserve Chairman Jerome Powell stoked the rates surge when he said the central bank could eventually boost its benchmark past the neutral level, after data that underscored the strength of the U.S. economy. Investors’ focus is now squarely on Friday’s monthly U.S. payrolls report for further clues on the policy outlook.
Also coming up Friday is the Reserve Bank of India’s policy decision, with most economists expecting a 25 basis-points hike. Complicating matters amid a slide in the rupee and rising oil prices is a cash crunch in the banking system and a crisis at one of the country’s biggest infrastructure financiers.
Elsewhere, West Texas Intermediate crude oil prices climbed back toward $75 a barrel. Copper led a decline in industrial-metal prices as a rally in raw materials stalled.
These are the main moves in markets:
Stocks
The Stoxx Europe 600 Index fell 0.5 percent as of 9:18 a.m. London time, the lowest in three weeks. Futures on the S&P 500 Index dipped 0.2 percent to the lowest in more than two weeks. The MSCI All-Country World Index declined 0.3 percent to the lowest in more than three weeks. The U.K.’s FTSE 100 Index decreased 0.5 percent. Germany’s DAX Index fell 0.6 percent. The MSCI Emerging Market Index dipped 0.7 percent to 1,003.71, the lowest in more than three weeks.
Currencies
The Bloomberg Dollar Spot Index increased less than 0.05 percent. The euro fell 0.1 percent to $1.1502. The British pound climbed 0.1 percent to $1.3035. The Japanese yen gained 0.1 percent to 113.83 per dollar.
Bonds
The yield on 10-year Treasuries advanced two basis points to 3.21 percent, the highest in more than seven years. Germany’s 10-year yield jumped three basis points to 0.57 percent, the highest in 20 weeks. Britain’s 10-year yield climbed three basis points to 1.701 percent, the highest in almost three years. Japan’s 10-year yield dipped less than one basis point to 0.155 percent. Italy’s 10-year yield advanced two basis points to 3.354 percent.
Commodities
West Texas Intermediate crude gained 0.4 percent to $74.60 a barrel. Gold dipped 0.1 percent to $1,198.74 an ounce. Copper fell 0.6 percent to $2.76 a pound, the lowest in more than two weeks.
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