Stock Declines Ease as Results Roll In; Oil Climbs: Markets Wrap
European stocks edged lower following a mixed session across Asia as investors grappled with a flood of company earnings. The dollar pulled back from its highest in three months, Treasuries fluctuated, and oil gained.
National gauges were mixed but the Stoxx Europe 600 Index was trading in the red for a third day. U.S. equity futures also dipped. Korean and Japanese shares rose while those in China and Hong Kong pushed lower. The euro strengthened ahead of a European Central Bank rate decision, while German bund yields slipped.
As the earnings season ramps up, investors are starting to question whether global equities will be able to cope with higher interest rates. Signs of optimism from Facebook Inc. and Samsung Electronics Co. are offsetting pockets of concern around technology and industrial companies that have weighed on stocks this month.
Elsewhere, West Texas crude pushed further above $68 a barrel as French President Emmanuel Macron predicted U.S. President Donald Trump will withdraw from the Iran nuclear deal, casting a cloud over Middle East geopolitics.
These are some important events remaining this week:
- U.S. GDP data are due Friday.
- Earnings season continues, with Amazon.com among those due to report.
- The European Central Bank has a rate decision on Thursday. Investors will watch for any sign that officials are preparing a shift in stimulus plans for their June meeting.
- The Bank of Japan announces its latest policy decision Friday and releases updated economic projections.
- The leaders of North and South Korea meet Friday.
And these are the main moves in markets:
- The Stoxx Europe 600 Index declined 0.1 percent as of 8:09 a.m. London time, the lowest in more than a week.
- Futures on the S&P 500 Index sank 0.2 percent.
- The MSCI All-Country World Index decreased less than 0.05 percent, hitting the lowest in more than two weeks with its sixth consecutive decline.
- The U.K.’s FTSE 100 Index fell 0.3 percent to the lowest in a week.
- Germany’s DAX Index sank 0.3 percent to the lowest in more than two weeks.
- The MSCI Emerging Market Index fell 0.2 percent, reaching the lowest in more than four months on its fifth straight decline.
- The MSCI Asia Pacific Index dipped 0.1 percent to the lowest in more than three weeks.
- The Bloomberg Dollar Spot Index decreased 0.1 percent.
- The euro gained 0.1 percent to $1.2178.
- The British pound increased 0.1 percent to $1.394.
- The Japanese yen advanced 0.2 percent to 109.26 per dollar, the first advance in more than a week.
- The yield on 10-year Treasuries decreased two basis points to 3.01 percent, the first retreat in more than a week and the biggest tumble in more than two weeks.
- Germany’s 10-year yield declined one basis point to 0.62 percent, the largest decrease in more than a week.
- Britain’s 10-year yield dipped one basis point to 1.526 percent.
- West Texas Intermediate crude climbed 0.2 percent to $68.19 a barrel.
- Copper declined 0.3 percent to $3.15 a pound.
- Gold increased 0.2 percent to $1,326.14 an ounce.