European stocks turned lower on Wednesday alongside U.S. equity futures as the rebound in global shares struggled to maintain its momentum. Oil slipped, while Treasuries advanced with German bonds.
Contracts on the S&P 500, Dow and Nasdaq swung between gains and losses, while the Stoxx Europe 600 edged lower as drops in carmakers offset gains in construction companies. The bright spot was Asia, where a regional equities gauge headed for its biggest one-day increase in six weeks. Mainland China led gains as speculation increased that Beijing will boost stimulus after data showed the economy lost steam.
Treasury yields sank to the lowest level since March, with investors still reeling from the breakdown in trade negotiations in the past week. Yields on 10-year German bunds slipped to the lowest since 2016, but they jumped for Italy’s debt, as the nation’s deputy premier Matteo Salvini ratcheted up tensions over the country’s deficit.
Elsewhere, oil fell as an industry report signaling a jump in US stockpiles eased concerns over a supply crunch, after a drone attack in Saudi Arabia had highlighted the vulnerability of the country’s energy infrastructure.