European Stock Markets
Stocks declined globally on Monday as investors braced for a week packed with risk events, from central bank decisions to Brexit talks to a G-20 gathering. Commodities were weaker across the board, the dollar reversed an advance and Treasury yields rose.
The Stoxx Europe 600 Index headed for the first decline in three days as technology companies slumped with miners, with almost every industry group in the red.
The MSCI Asia Pacific Index of stocks also fell, with tech shares also under pressure as Apple appeared poised to disrupt its supply chain. The yen fluctuated amid a drop in support for Japanese Prime Minister Shinzo Abe’s cabinet, which has championed currency weakness. Core European government bonds followed Treasuries lower. Gold dropped.
The biggest focus for global markets this week will be the first U.S. interest rate decision under the Federal Reserve’s new Chairman Jerome Powell.
It comes just weeks after he hinted to investors that he’s open to lifting the policy rate four times this year, rather than the three currently reflected in dot-plot forecasts. Some Wall Street banks such as Goldman Sachs Group Inc. expect the median projection to rise to four on Wednesday, while others say there will be no change following a round of mediocre data and policy makers’ stated intentions to move gradually.
Trade tensions also remain in the spotlight as U.S. Treasury official David Malpass said he misspoke hours after claiming the U.S. was pulling out of decade-old formal economic talks with Beijing. Meanwhile, investors are assessing the implications of a new head at China’s central bank.
Elsewhere, the ruble weakened for a sixth day, the longest losing streak since October, as Russian President Vladimir Putin won a landslide victory in a tightly controlled election. Bitcoin recovered to trade back above $8,000 after tumbling as much as 13 percent from Friday. West Texas oil fell toward $62 a barrel.
Stocks
The Stoxx Europe 600 Index declined 0.6 percent as of 10:39 a.m. London time.
Futures on the S&P 500 Index decreased 0.5 percent to the lowest in more than a week.
The MSCI Asia Pacific Index dipped 0.6 percent.
The U.K.’s FTSE 100 Index sank 1.3 percent on the biggest tumble in more than two weeks.
The MSCI Emerging Market Index decreased 0.5 percent on the largest dip in two weeks.
Currencies
The euro advanced less than 0.05 percent to $1.2296.
The British pound climbed 0.6 percent to $1.4032, the strongest in more than a month on the biggest increase in more than a month.
The Japanese yen dipped 0.1 percent to 106.09 per dollar.
South Africa’s rand sank 0.4 percent to 12.0231 per dollar, the weakest in more than five weeks.
The MSCI Emerging Markets Currency Index declined 0.1 percent to the lowest in two weeks.
Bonds
The yield on 10-year Treasuries gained two basis points to 2.86 percent.
Germany’s 10-year yield rose one basis point to 0.58 percent.
Britain’s 10-year yield climbed three basis points to 1.429 percent, the biggest surge in almost three weeks.
The Stoxx Europe 600 Index headed for the first decline in three days as technology companies slumped with miners, with almost every industry group in the red.
The MSCI Asia Pacific Index of stocks also fell, with tech shares also under pressure as Apple appeared poised to disrupt its supply chain. The yen fluctuated amid a drop in support for Japanese Prime Minister Shinzo Abe’s cabinet, which has championed currency weakness. Core European government bonds followed Treasuries lower. Gold dropped.
The biggest focus for global markets this week will be the first U.S. interest rate decision under the Federal Reserve’s new Chairman Jerome Powell.
It comes just weeks after he hinted to investors that he’s open to lifting the policy rate four times this year, rather than the three currently reflected in dot-plot forecasts. Some Wall Street banks such as Goldman Sachs Group Inc. expect the median projection to rise to four on Wednesday, while others say there will be no change following a round of mediocre data and policy makers’ stated intentions to move gradually.
Trade tensions also remain in the spotlight as U.S. Treasury official David Malpass said he misspoke hours after claiming the U.S. was pulling out of decade-old formal economic talks with Beijing. Meanwhile, investors are assessing the implications of a new head at China’s central bank.
Elsewhere, the ruble weakened for a sixth day, the longest losing streak since October, as Russian President Vladimir Putin won a landslide victory in a tightly controlled election. Bitcoin recovered to trade back above $8,000 after tumbling as much as 13 percent from Friday. West Texas oil fell toward $62 a barrel.
Stocks
The Stoxx Europe 600 Index declined 0.6 percent as of 10:39 a.m. London time.
Futures on the S&P 500 Index decreased 0.5 percent to the lowest in more than a week.
The MSCI Asia Pacific Index dipped 0.6 percent.
The U.K.’s FTSE 100 Index sank 1.3 percent on the biggest tumble in more than two weeks.
The MSCI Emerging Market Index decreased 0.5 percent on the largest dip in two weeks.
Currencies
The euro advanced less than 0.05 percent to $1.2296.
The British pound climbed 0.6 percent to $1.4032, the strongest in more than a month on the biggest increase in more than a month.
The Japanese yen dipped 0.1 percent to 106.09 per dollar.
South Africa’s rand sank 0.4 percent to 12.0231 per dollar, the weakest in more than five weeks.
The MSCI Emerging Markets Currency Index declined 0.1 percent to the lowest in two weeks.
Bonds
The yield on 10-year Treasuries gained two basis points to 2.86 percent.
Germany’s 10-year yield rose one basis point to 0.58 percent.
Britain’s 10-year yield climbed three basis points to 1.429 percent, the biggest surge in almost three weeks.
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