Global Stock Markets
There was a risk-off flavor to markets on Tuesday, with U.S. stock futures slipping, European equities struggling for traction and declines across Asia as investors grappled with worries around trade, growth and geopolitics. The dollar rallied, a bond sell-off deepened, and oil advanced.
The Stoxx Europe 600 Index edged higher led by energy shares, gradually overcoming a plunge in telecom companies. Equity benchmarks fell in South Korea and Australia earlier, while they rose in Shanghai and dropped in Hong Kong after data showed China’s economic momentum holding up but investment slowing. Treasury yields once again climbed above 3 percent. The euro slid after German growth data disappointed.
What began as a sell-off in European bonds on Monday -- off the back of hawkish comments from an ECB official -- picked up steam through the U.S. session and carried through to Asia. Rising yields, a stronger dollar and sliding stocks are fast becoming a familiar and uncomfortable cocktail for investors. Now violence in the Middle East, the U.S.-China trade spat, uncertainty on Italy’s government and global growth concerns are helping cement the prevailing sentiment.
Despite the sour mood, established safe-haven assets failed to catch a bid. Gold and the yen slipped, while the Swiss franc edged lower.
Elsewhere, the Turkish lira hit a new low after President Recep Tayyip Erdogan said he intends to tighten his grip on the economy and take more responsibility for monetary policy if he wins an election next month. Emerging-market stocks slumped.
tocks
The Stoxx Europe 600 Index increased 0.1 percent as of 7:30 a.m. New York time.
Futures on the S&P 500 Index fell 0.3 percent, the first retreat in almost two weeks.
The MSCI All-Country World Index dipped 0.4 percent, the first retreat in a week and the largest decrease in more than a week.
The U.K.’s FTSE 100 Index gained 0.2 percent to the highest in 16 weeks.
Germany’s DAX Index climbed less than 0.05 percent.
The MSCI Emerging Market Index sank 1.3 percent, the first retreat in more than a week and the biggest tumble in more than three weeks.
The MSCI Asia Pacific Index sank 0.9 percent, the largest decrease in more than three weeks.
Currencies
The Bloomberg Dollar Spot Index jumped 0.4 percent, the biggest increase in two weeks.
The euro fell 0.4 percent to $1.1884, the largest fall in a week.
The British pound declined 0.2 percent to $1.3524, the biggest drop in more than a week.
The Japanese yen dipped 0.3 percent to 109.94 per dollar, the weakest in more than 14 weeks.
Bonds
The yield on 10-year Treasuries climbed two basis points to 3.02 percent, the highest in almost three weeks.
Germany’s 10-year yield increased two basis points to 0.63 percent, the highest in almost three weeks.
Britain’s 10-year yield gained two basis points to 1.492 percent, the highest in almost three weeks.
What began as a sell-off in European bonds on Monday -- off the back of hawkish comments from an ECB official -- picked up steam through the U.S. session and carried through to Asia. Rising yields, a stronger dollar and sliding stocks are fast becoming a familiar and uncomfortable cocktail for investors. Now violence in the Middle East, the U.S.-China trade spat, uncertainty on Italy’s government and global growth concerns are helping cement the prevailing sentiment.
Despite the sour mood, established safe-haven assets failed to catch a bid. Gold and the yen slipped, while the Swiss franc edged lower.
Elsewhere, the Turkish lira hit a new low after President Recep Tayyip Erdogan said he intends to tighten his grip on the economy and take more responsibility for monetary policy if he wins an election next month. Emerging-market stocks slumped.
tocks
The Stoxx Europe 600 Index increased 0.1 percent as of 7:30 a.m. New York time.
Futures on the S&P 500 Index fell 0.3 percent, the first retreat in almost two weeks.
The MSCI All-Country World Index dipped 0.4 percent, the first retreat in a week and the largest decrease in more than a week.
The U.K.’s FTSE 100 Index gained 0.2 percent to the highest in 16 weeks.
Germany’s DAX Index climbed less than 0.05 percent.
The MSCI Emerging Market Index sank 1.3 percent, the first retreat in more than a week and the biggest tumble in more than three weeks.
The MSCI Asia Pacific Index sank 0.9 percent, the largest decrease in more than three weeks.
Currencies
The Bloomberg Dollar Spot Index jumped 0.4 percent, the biggest increase in two weeks.
The euro fell 0.4 percent to $1.1884, the largest fall in a week.
The British pound declined 0.2 percent to $1.3524, the biggest drop in more than a week.
The Japanese yen dipped 0.3 percent to 109.94 per dollar, the weakest in more than 14 weeks.
Bonds
The yield on 10-year Treasuries climbed two basis points to 3.02 percent, the highest in almost three weeks.
Germany’s 10-year yield increased two basis points to 0.63 percent, the highest in almost three weeks.
Britain’s 10-year yield gained two basis points to 1.492 percent, the highest in almost three weeks.
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