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Asian shares tumble after S&P 500 Index declined 2.1% Friday
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Ten-year Treasury yield edges higher as bund yield retreats
European and Asian equities fell and U.S. share futures headed lower as global stocks extended the biggest selloff since 2016. Treasury yields crept higher while the dollar steadied.
The Europe Stoxx 600 Index, retreating for a sixth day, followed similar moves across Asia, where Japan’s Nikkei 225 benchmark dropped the most in 14 months. S&P 500 Index futures pared an earlier decline of as much as 0.9 percent, signaling Friday’s selloff may ease on Wall Street. The 10-year Treasury yield continued higher after a selloff last week and core government bonds in Europe climbed. The dollar steadied against the British pound and euro, though it slipped against the yen.
Investors are watching closely for signs on the direction of the rout that started in U.S. Treasuries and spread across global markets last week, with some pointing to continued signs of economic growth as a reason to remain optimistic. European Central Bank President Mario Draghi could help stem further losses when he delivers an annual report to the European Parliament on Monday.
Elsewhere, oil extended declines after U.S. explorers raised the number of rigs drilling for crude to the most since August. Shares in Hong Kong and Shanghai trimmed declines after China’s securities regulator urged brokerages to help stem the rout. Bitcoin dipped below $8,000.
Terminal users can read more in our markets blog.
Here are some key events scheduled for this week:
- Monetary policy decisions are due in Australia, Russia, India, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru, and the Philippines.
- Earnings season continues with reports from Bristol-Myers Squibb, Ryanair, Toyota Motor Corp., BNP Paribas, BP, General Motors, Walt Disney, SoftBank, Sanofi, Philip Morris, Total, Tesla, Rio Tinto, L’Oreal and Twitter.
- Dallas Fed President Robert Kaplan and New York Fed President William Dudley are among policy officials due to speak in Frankfurt and New York.
These are the main moves in markets:
Stocks
- The Stoxx Europe 600 Index dipped 1.1 percent as of 8:58 a.m. London time, hitting the lowest in more than two months with its sixth consecutive decline.
- The U.K.’s FTSE 100 Index dipped 1.2 percent, reaching the lowest in two months on its fifth consecutive decline and the biggest decrease in six months.
- Germany’s DAX Index decreased 0.6 percent, hitting the lowest in almost 19 weeks with its sixth consecutive decline.
- Futures on the S&P 500 Index fell 0.3 percent to the lowest in four weeks.
Currencies
- The Bloomberg Dollar Spot Index dipped 0.1 percent.
- The euro fell less than 0.05 percent to $1.2461.
- The British pound climbed 0.1 percent to $1.4131.
Bonds
- The yield on 10-year Treasuries advanced one basis point to 2.85 percent, the highest in about four years.
- Germany’s 10-year yield fell three basis points to 0.74 percent, the largest drop in almost six weeks.
- Britain’s 10-year yield fell one basis point to 1.57 percent, the first retreat in almost two weeks and the biggest fall in almost three weeks.
Commodities
- Gold advanced 0.2 percent to $1,335.08 an ounce.
- West Texas Intermediate crude decreased 0.9 percent to $64.87 a barrel.
By Natasha Doff
February 5, 2018, 8:01 PM GMT+11
— With assistance by Adam Haigh
Source: Bloomberg