US stocks fall, bonds climb as China data disappoints

Futures on the Dow, Nasdaq, and S&P 500 held losses as Citigroup Inc. slipped in pre-market trading following a fourth-quarter revenue miss.

Jan 14, 2019 02:01 IST India Infoline News Service

Businessman sleeping with bear with down trend graph
US equity futures followed stocks in Europe and Asia lower on Monday as China trade data showed a worse-than-expected slump, reigniting concerns about global growth. Treasury yields fell and the dollar held steady.

Futures on the Dow, Nasdaq, and S&P 500 held losses as Citigroup Inc. slipped in pre-market trading following a fourth-quarter revenue miss.

The Stoxx Europe 600 Index snapped four days of gains, dragged lower by technology companies.

In Asia, losses were most pronounced in Hong Kong after China posted the worst import and export figures since 2016.

The euro held steady even as data showed industrial output slowed, while the pound edged higher before Tuesday’s crucial vote on Brexit.

This month’s buoyancy in global equities, triggered by signs of progress in US-China trade talks and dovish commentary from Federal Reserve officials, faces a test with the Chinese data underscoring the impact of the trade spat.

The next hurdles to clear will be a slew of US bank profit reports and earnings season, amid worries global growth is slowing. Also weighing on sentiment is the partial U.S government shutdown that’s entered its fourth week.

Elsewhere, West Texas Intermediate crude traded near $51 a barrel. Emerging market currencies and shares dipped. Japan was closed for a holiday.

These are the main moves in markets:

Stocks
  • Futures on the S&P 500 Index declined 0.8% as of 8:31 AM New York time, the first retreat in more than a week.
  • The Stoxx Europe 600 Index fell 0.8%, the first retreat in a week and the biggest fall in more than a week.
  • The MSCI All-Country World Index decreased 0.3%, the first retreat in more than a week.
  • The MSCI Emerging Market Index sank 0.9%, the biggest dip in more than a week.

Currencies
  • The Bloomberg Dollar Spot Index decreased less than 0.05%.
  • The euro dipped 0.1% to $1.1461.
  • The Japanese yen jumped 0.3% to 108.11 per dollar, the strongest in more than a week.
  • The British pound gained 0.1% to $1.2853, the strongest in more than seven weeks.
  • The MSCI Emerging Markets Currency Index sank 0.3%, the largest decrease in a month.

Bonds
  • The yield on 10-year Treasuries decreased two basis points to 2.68%, the lowest in more than a week.
  • Germany’s 10-year yield decreased three basis points to 0.21%, the lowest in more than a week on the largest tumble in more than a week.
  • Britain’s 10-year yield decreased four basis points to 1.251%, the lowest in more than a week on the biggest tumble in more than a week.
  • The spread of Italy’s 10-year bonds over Germany’s rose five basis points to 2.6631 percentage points.

Commodities
  • The Bloomberg Commodity Index decreased 0.1%.
  • West Texas Intermediate crude fell 1.5% to $50.82 a barrel.
  • LME copper fell 0.8% to $5,892.50 per metric ton, the lowest in more than a week on the biggest fall in more than a week.
  • Gold increased 0.3% to $1,293.86 an ounce, the highest in more than a week.

Here are some important events coming up:
  • Some of the world’s biggest banks announce earnings, including JPMorgan, Bank of America, Wells Fargo, Morgan Stanley, and Goldman Sachs. Alcoa, Indian IT company Mindtree, Netflix, Taiwan Semiconductor, American Express, and BlackRock also post results.

Source: Bloomberg

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