(Bloomberg) -- U.S. equity futures retreated alongside European stocks on Tuesday, tracking broad declines across Asia amid mounting worries about a deadly virus in China and after a series of negative developments in Hong Kong.
Contracts on the three main U.S. equity benchmarks all pointed to a drop when Wall Street returns from the long weekend. The Stoxx Europe 600 Index fell a second day, with banks among the biggest losers after UBS Group AG missed key profitability and cost targets. Retailers also retreated, with luxury stocks suffering on concern the outbreak of a new respiratory virus in China will disrupt spending during a key holiday period.
News of the illness spreading rattled Asian markets, with shares in Hong Kong hit particularly hard in the wake of a credit rating downgrade and a top official calling for new security legislation. The risk-off mood helped spur some traditional haven assets, and the yen and Treasuries advanced. The Chinese and South Korean currencies sank. The pound turned higher after better-than-expected U.K. employment figures.
Read more: China Virus Concern Hammers Asian Stock Sentiment
The emergence of the illness in China is stirring memories of the SARS outbreak 17 years ago for some market watchers, though it’s not yet as serious. Still, easing trade tensions, a solid start to earnings season and signs global growth is bottoming have all combined to stoke stocks to multiple records this month; for many investors it may be time for a pause.
“For the market, the more meaningful driver still remains the economic cycle and earnings momentum,” Fan Cheuk Wan, Asia chief market strategist at HSBC Private Bank, said on Bloomberg TV. “Based on previous experience we have come across during SARS, the impact of the virus is likely to be short-lived.”
Elsewhere, the Bank of Japan kept policy unchanged as expected, though raised its economic growth forecast for 2020. Brent crude dipped below $65 a barrel as ample global supplies offset the loss of exports from Libya.
Here are some events to watch out for this week:
Companies including Netflix, IBM, Procter & Gamble and Hyundai will post results.Policy decisions are due from central banks in Canada, Indonesia and the euro zone.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, is underway in Davos, Switzerland.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index dipped 0.3% as of 6:14 a.m. New York time.The Stoxx Europe 600 Index sank 0.7%.The MSCI Asia Pacific Index fell 1.1%.
Currencies
The Bloomberg Dollar Spot Index was little changed.The euro increased 0.1% to $1.1109.The British pound advanced 0.3% to $1.3055.The Japanese yen strengthened 0.1% to 110.07 per dollar.
Bonds
The yield on 10-year Treasuries dipped two basis points to 1.81%.Germany’s 10-year yield advanced one basis point to -0.22%.Britain’s 10-year yield climbed one basis point to 0.643%.
Commodities
West Texas Intermediate crude dipped 1.2% to $57.85 a barrel.Gold fell 0.4% to $1,554.18 an ounce.
--With assistance from Livia Yap, Eric Lam, Ranjeetha Pakiam and Cormac Mullen.
To contact the reporter on this story: Sam Potter in London at spotter33@bloomberg.net
To contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, Yakob Peterseil, Todd White
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
Business - Latest - Google News
January 21, 2020 at 03:14PM
https://ift.tt/37e5BKB
Stocks Decline With U.S. Futures; Treasuries Rise: Markets Wrap - Yahoo Finance
Business - Latest - Google News
https://ift.tt/2Rx7A4Y
Bagikan Berita Ini
0 Response to "Stocks Decline With U.S. Futures; Treasuries Rise: Markets Wrap - Yahoo Finance"
Post a Comment