Stocks Fall as China Data Sours, Treasuries Climb: Markets Wrap


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Stocks dropped in Europe and Asia, with U.S. equity futures also declining as China trade data showed a worse-than-expected slump, reigniting concerns about global growth. Treasury yields slipped and the dollar edged lower.

Technology and health care companies were among the biggest decliners in the Stoxx Europe 600 Index, with futures on the Dow, Nasdaq and S&P 500 all pointing to a weaker open. In Asia, losses were most pronounced in Hong Kong after China posted the worst import and export figures since 2016. The euro was little changed, while the pound declined before Tuesday’s crucial vote on Brexit, with U.K. Prime Minister Theresa May appearing no closer to getting the backing she needs.

This month’s buoyancy in global equities, triggered by signs of progress in U.S.-China trade talks and dovish commentary from Federal Reserve officials, faces a test with the Chinese data underscoring the impact of the trade spat. The next hurdles to clear will be a slew of U.S. bank profit reports and earnings season, amid worries global growth is slowing. Also weighing on sentiment is the partial U.S government shutdown that’s entered its fourth week.

Elsewhere, West Texas Intermediate crude hovered around $51 a barrel. Emerging market currencies and shares fell. Japan was closed for a holiday.

Terminal users can read our Markets Live blog.

Here are some important events coming up:

Some of the world’s biggest banks announce earnings, including Citigroup, JPMorgan, Bank of America, Wells Fargo, Morgan Stanley and Goldman Sachs. Alcoa, Indian IT company Mindtree, Netflix, Taiwan Semiconductor, American Express and BlackRock also post results.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index declined 0.7 percent as of 9:19 a.m. London time, the first retreat in more than a week.The Stoxx Europe 600 Index fell 0.5 percent, the first retreat in a week and the biggest fall in more than a week.The MSCI All-Country World Index decreased 0.2 percent, the first retreat in more than a week.The MSCI Emerging Market Index sank 0.9 percent, the biggest dip in more than a week.

Currencies

The Bloomberg Dollar Spot Index dipped 0.1 percent.The euro climbed less than 0.05 percent to $1.1473.The Japanese yen jumped 0.3 percent to 108.14 per dollar, the strongest in more than a week.The British pound declined 0.1 percent to $1.2831.The MSCI Emerging Markets Currency Index fell 0.2 percent.

Bonds

The yield on 10-year Treasuries dipped two basis points to 2.68 percent, the lowest in more than a week.Germany’s 10-year yield decreased two basis points to 0.22 percent, the lowest in a week.Britain’s 10-year yield decreased three basis points to 1.263 percent, the biggest tumble in more than a week.The spread of Italy’s 10-year bonds over Germany’s rose five basis points to 2.6641 percentage points.

Commodities

The Bloomberg Commodity Index climbed less than 0.05 percent.West Texas Intermediate crude fell 0.9 percent to $51.13 a barrel.LME copper fell 0.8 percent to $5,892.50 per metric ton, the lowest in more than a week on the biggest fall in more than a week.Gold increased 0.3 percent to $1,293.77 an ounce, the highest in more than a week.

–With assistance from Sarah Ponczek, Justina Lee and Adam Haigh.

To contact the reporter on this story: Eddie van der Walt in London at evanderwalt@bloomberg.net

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Yakob Peterseil

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.



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