European Stock Markets
U.S. equity futures steadied alongside European stocks as global markets regained some composure following a hectic Tuesday session. The dollar rose a fourth day as concerns surrounding Italy weighed on the euro, and Treasury yields edged lower after their spike a day earlier.
Contracts for the S&P 500, Dow Jones and Nasdaq were all directionless as the Stoxx Europe 600 Index drifted. Equities in Asia nudged lower, with shares in Japan and Hong Kong declining while Australia’s main gauge eked out a gain and Korean stocks were little changed.
Italian bonds slumped and the country’s stocks underperformed as populist parties struggling to form a government discussed a potential government debt write-down. The common currency fell a third day, but core European bonds followed Treasuries higher.
Wednesday’s relative stability will be welcomed by many investors, given that fresh uncertainty about the U.S.-North Korea summit is surfacing just as violence flares in Gaza, the IMF warns on the threat protectionism poses to global growth, and Italy stands on the brink of a euro-skeptic government.
Against that backdrop U.S. Treasury yields, which act as a benchmark for global borrowing costs, have been rising as traders boost bets the Federal Reserve will accelerate monetary tightening. That’s helped drive a dollar rally and sucked cash from some other asset classes.
Elsewhere, emerging-market equities steadied following Tuesday’s plunge, but developing currencies turned lower and the lira weakened again. The Thai baht, South Korean won and Indonesian rupiah led Asian declines. The Malaysian ringgit fell for a sixth day after overseas investors pulled out a net $376 million from stocks over Monday and Tuesday in the wake of last week’s election.
Stocks
The Stoxx Europe 600 Index gained less than 0.05 percent as of 6:12 a.m. New York time, the highest in almost 15 weeks.
Futures on the S&P 500 Index dipped less than 0.05 percent to the lowest in a week.
The U.K.’s FTSE 100 Index advanced less than 0.05 percent to the highest in 16 weeks.
Germany’s DAX Index advanced 0.2 percent.
The MSCI Emerging Market Index was unchanged at the lowest in a week.
The MSCI Asia Pacific Index sank 0.1 percent.
Currencies
The Bloomberg Dollar Spot Index climbed 0.2 percent to the highest in 20 weeks.
The euro fell 0.3 percent to $1.1797, the weakest in more than 21 weeks.
The British pound declined 0.2 percent to $1.3471, the weakest in almost 20 weeks.
The Japanese yen increased 0.2 percent to 110.18 per dollar.
Bonds
The yield on 10-year Treasuries decreased one basis point to 3.06 percent.
Germany’s 10-year yield declined three basis points to 0.62 percent, the biggest drop in almost two weeks.
Britain’s 10-year yield dipped two basis points to 1.493 percent.
Contracts for the S&P 500, Dow Jones and Nasdaq were all directionless as the Stoxx Europe 600 Index drifted. Equities in Asia nudged lower, with shares in Japan and Hong Kong declining while Australia’s main gauge eked out a gain and Korean stocks were little changed.
Italian bonds slumped and the country’s stocks underperformed as populist parties struggling to form a government discussed a potential government debt write-down. The common currency fell a third day, but core European bonds followed Treasuries higher.
Wednesday’s relative stability will be welcomed by many investors, given that fresh uncertainty about the U.S.-North Korea summit is surfacing just as violence flares in Gaza, the IMF warns on the threat protectionism poses to global growth, and Italy stands on the brink of a euro-skeptic government.
Against that backdrop U.S. Treasury yields, which act as a benchmark for global borrowing costs, have been rising as traders boost bets the Federal Reserve will accelerate monetary tightening. That’s helped drive a dollar rally and sucked cash from some other asset classes.
Elsewhere, emerging-market equities steadied following Tuesday’s plunge, but developing currencies turned lower and the lira weakened again. The Thai baht, South Korean won and Indonesian rupiah led Asian declines. The Malaysian ringgit fell for a sixth day after overseas investors pulled out a net $376 million from stocks over Monday and Tuesday in the wake of last week’s election.
Stocks
The Stoxx Europe 600 Index gained less than 0.05 percent as of 6:12 a.m. New York time, the highest in almost 15 weeks.
Futures on the S&P 500 Index dipped less than 0.05 percent to the lowest in a week.
The U.K.’s FTSE 100 Index advanced less than 0.05 percent to the highest in 16 weeks.
Germany’s DAX Index advanced 0.2 percent.
The MSCI Emerging Market Index was unchanged at the lowest in a week.
The MSCI Asia Pacific Index sank 0.1 percent.
Currencies
The Bloomberg Dollar Spot Index climbed 0.2 percent to the highest in 20 weeks.
The euro fell 0.3 percent to $1.1797, the weakest in more than 21 weeks.
The British pound declined 0.2 percent to $1.3471, the weakest in almost 20 weeks.
The Japanese yen increased 0.2 percent to 110.18 per dollar.
Bonds
The yield on 10-year Treasuries decreased one basis point to 3.06 percent.
Germany’s 10-year yield declined three basis points to 0.62 percent, the biggest drop in almost two weeks.
Britain’s 10-year yield dipped two basis points to 1.493 percent.
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