European Stock Markets
The dollar resumed its advance on Wednesday, climbing to the highest
in three months as the yield on benchmark U.S. Treasuries extended its
move above 3 percent. Stocks declined amid a slew of earnings.
The
greenback strengthened against almost every major peer, with the euro
among the losers a day before the European Central Bank’s next rate
decision. The currency weakness was no tonic for equities, and the Stoxx
Europe 600 Index fell along with U.S. futures and the MSCI Asia Pacific
Index after less-than-optimistic earnings forecasts Tuesday from bellwethers including Caterpillar Inc.
The sudden upward momentum in the dollar looks set to force a rethink on many of the most popular trades just now. It may spell more turmoil for equity markets, which have been roiled by rising yields and threats to global trade in recent weeks and had been looking to earnings for some cheer. Instead, a mixed bag of results across market-driving tech shares and industrial bellwethers is doing little to calm Wall Street nerves over the fate of global growth.
Wednesday’s moves weren’t entirely risk-off, however, and established safe-haven assets including gold and the yen retreated.
Elsewhere, WTI oil drifted below $68 a barrel while most industrial metals also declined. Emerging-market currencies mostly weakened, led by South Africa’s rand, but Turkey’s lira gained ahead of a key rate decision by the country’s central bank.
Australian markets were shut for a holiday.
The Stoxx Europe 600 Index declined 0.7 percent as of 9:25 a.m. London time on the largest drop in more than a month.
Futures on the S&P 500 Index fell 0.2 percent on its fifth consecutive decline.
The MSCI All-Country World Index dipped 0.3 percent, hitting the lowest in more than two weeks with its fifth consecutive decline.
The U.K.’s FTSE 100 Index declined 0.5 percent, the first retreat in more than a week.
Germany’s DAX Index declined 1 percent on the largest drop in more than a month.
The MSCI Emerging Market Index decreased 0.8 percent to the lowest in almost 11 weeks.
The MSCI Asia Pacific Index fell 0.6 percent to the lowest in almost three weeks.
Currencies
The euro dipped 0.3 percent to $1.2198, the weakest in eight weeks.
The British pound decreased 0.2 percent to $1.3948.
The Japanese yen fell 0.4 percent to 109.23 per dollar, hitting the weakest in 11 weeks with its sixth straight decline.
Bonds
The yield on 10-year Treasuries rose two basis points to 3.02 percent, reaching the highest in more than four years.
Germany’s 10-year yield climbed two basis points to 0.65 percent, the highest in seven weeks.
Britain’s 10-year yield gained three basis points to 1.568 percent, the highest in two months.
Commodities
West Texas Intermediate crude increased 0.3 percent to $67.91 a barrel.
Copper decreased 0.3 percent to $3.16 a pound.
Gold declined 0.4 percent to $1,324.42 an ounce, the weakest in five weeks.
The sudden upward momentum in the dollar looks set to force a rethink on many of the most popular trades just now. It may spell more turmoil for equity markets, which have been roiled by rising yields and threats to global trade in recent weeks and had been looking to earnings for some cheer. Instead, a mixed bag of results across market-driving tech shares and industrial bellwethers is doing little to calm Wall Street nerves over the fate of global growth.
Wednesday’s moves weren’t entirely risk-off, however, and established safe-haven assets including gold and the yen retreated.
Elsewhere, WTI oil drifted below $68 a barrel while most industrial metals also declined. Emerging-market currencies mostly weakened, led by South Africa’s rand, but Turkey’s lira gained ahead of a key rate decision by the country’s central bank.
Australian markets were shut for a holiday.
The Stoxx Europe 600 Index declined 0.7 percent as of 9:25 a.m. London time on the largest drop in more than a month.
Futures on the S&P 500 Index fell 0.2 percent on its fifth consecutive decline.
The MSCI All-Country World Index dipped 0.3 percent, hitting the lowest in more than two weeks with its fifth consecutive decline.
The U.K.’s FTSE 100 Index declined 0.5 percent, the first retreat in more than a week.
Germany’s DAX Index declined 1 percent on the largest drop in more than a month.
The MSCI Emerging Market Index decreased 0.8 percent to the lowest in almost 11 weeks.
The MSCI Asia Pacific Index fell 0.6 percent to the lowest in almost three weeks.
Currencies
The euro dipped 0.3 percent to $1.2198, the weakest in eight weeks.
The British pound decreased 0.2 percent to $1.3948.
The Japanese yen fell 0.4 percent to 109.23 per dollar, hitting the weakest in 11 weeks with its sixth straight decline.
Bonds
The yield on 10-year Treasuries rose two basis points to 3.02 percent, reaching the highest in more than four years.
Germany’s 10-year yield climbed two basis points to 0.65 percent, the highest in seven weeks.
Britain’s 10-year yield gained three basis points to 1.568 percent, the highest in two months.
Commodities
West Texas Intermediate crude increased 0.3 percent to $67.91 a barrel.
Copper decreased 0.3 percent to $3.16 a pound.
Gold declined 0.4 percent to $1,324.42 an ounce, the weakest in five weeks.
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