(Bloomberg) — European stocks fell, extending last week’s losses, on concern that earnings are coming in weaker than expected. Treasuries and oil retreated.
Most Read from Bloomberg
Europe’s Stoxx 600 index sank 0.5% and US equity futures declined. Volkswagen AG retreated almost 3% after earnings missed expectations and Royal Philips NV lost 4% after reporting a drop in order intake. The UK’s Vistry Group Plc tumbled after announcing hundreds of job cuts.
The yield on the US 10-year note rose seven basis points to 4.98%, oil slipped to $87 a barrel, while gold fell from a five-month high.
Traders are closely watching developments in the Middle East after Hamas released two US hostages and aid started to trickle through Egypt’s border with Gaza over the weekend. Still, the respite may prove fleeting with Israel stepping up air raids on Gaza in preparation for the “next phase” of its conflict with Hamas, while also warning that Hezbollah risks dragging Lebanon into a wider regional war.
Read more: Israel’s Support for Hostage Talks May Delay Invasion of Gaza
“It is a very volatile situation still,” said Stuart Cole, head macro economist at brokerage Equiti Capital. “While we may be seeing some dialing back of the hedging trades seen ahead of the weekend, this does not mean we are seeing any pro-risk sentiment emerging.”
In Argentina, investors were bracing for a selloff after Economy Minister Sergio Massa did better than forecast in Sunday’s presidential vote, dashing hopes for an outright win by a more market-friendly candidate. The nation’s dollar bond maturing July 2046 declined for a fourth day.
This week, traders will be seeking clues on the outlook for global interest rates with inflation readings in Australia and Japan as well as economic activity data in the US and Europe. Fed Chairman Jerome Powell is due to give remarks and the European Central Bank will deliver a policy decision later in the week.
In Asia, China shares led declines amid property sector woes, while Beijing announced a series of investigations into Foxconn Technology Group, Apple Inc.’s most important partner.
The yen slipped to 150.11 at the start of Asia trade before rapidly paring the move. Bank of Japan officials are pondering whether to tweak their yield-curve control setting at a policy meeting next week, the Nikkei newspaper reported Sunday, without saying where it got the information.
Read More: China Rattles Foreign Firms Again With Arrests, Foxconn Probe
Key events this week:
-
Taiwan jobless rate, industrial production, Monday
-
Eurozone consumer confidence, Monday
-
EU foreign ministers meet in Luxembourg, Monday
-
Reserve Bank of Australia Governor Michele Bullock speaks in Sydney, Tuesday
-
Eurozone S&P Global Services PMI, S&P Global Manufacturing PMI, Tuesday
-
UK S&P Global / CIPS Manufacturing PMI, jobless claims, unemployment, Tuesday
-
US S&P Global Manufacturing PMI, Tuesday
-
UN Security Council is expected to open debate on the Middle East, Tuesday
-
Microsoft, Alphabet earnings, Tuesday
-
Australia 3Q CPI, Wednesday
-
Germany IFO business climate, Wednesday
-
IBM, Meta earnings, Wednesday
-
South Korea GDP, Thursday
-
European Central Bank rate decision, Thursday
-
EU leaders summit in Brussels, Thursday-Friday
-
US wholesale inventories, GDP, US durable goods, initial jobless claims, Thursday
-
Intel, Amazon earnings, Thursday
-
Japan Tokyo CPI, Friday
-
China industrial profits, Friday
-
US personal spending and income, University of Michigan consumer sentiment, Friday
-
Exxon Mobil earnings, Friday
Some of the main moves in markets:
Stocks
-
The Stoxx Europe 600 fell 0.4% as of 9:16 a.m. London time
-
S&P 500 futures were little changed
-
Nasdaq 100 futures were little changed
-
Futures on the Dow Jones Industrial Average fell 0.2%
-
The MSCI Asia Pacific Index fell 0.7%
-
The MSCI Emerging Markets Index fell 0.6%
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
The euro rose 0.2% to $1.0610
-
The Japanese yen was little changed at 149.88 per dollar
-
The offshore yuan was little changed at 7.3217 per dollar
-
The British pound rose 0.1% to $1.2181
Cryptocurrencies
-
Bitcoin rose 2.3% to $30,546
-
Ether rose 2.3% to $1,678.96
Bonds
-
The yield on 10-year Treasuries advanced seven basis points to 4.98%
-
Germany’s 10-year yield advanced four basis points to 2.93%
-
Britain’s 10-year yield advanced four basis points to 4.69%
Commodities
This story was produced with the assistance of Bloomberg Automation.
Most Read from Bloomberg Businessweek
©2023 Bloomberg L.P.
Source: finance.yahoo.com