US equity futures and European shares edged down after President Donald Trump threatened new tariffs on goods produced in the EU. The dollar slipped while Treasuries nudged higher.
Contracts on the Dow, S&P 500 and Nasdaq pointed to a weaker open and the Stoxx 600 Index erased an earlier gain as the European Union prepared retaliatory tariffs in response to the move from Washington. Technology shares and carmakers led the declines, while banks were the best-performing sector in the European gauge as Societe Generale said it planned to cut about 1,600 jobs in an effort to boost profits. Earlier in Asia, most equity gauges advanced. The pound and euro rose as UK Prime Minister Theresa May met with key EU leaders on Brexit, while European bonds were little changed.
Investors were reminded of the threats to international trade as Trump proposed tariffs on a hodgepodge of European products from passenger helicopters to cheese and ski-suits, just as the global powers are set to begin negotiating a deal. Focus also remains on the prospects for a conclusion in talks between the US and China, as well as key events this week, including American inflation data, a European Central Bank decision and May’s meeting with EU leaders.
Elsewhere, Saudi Aramco, the world’s largest oil company, received more than $100 billion in orders for its debut bond sale, kickstarting an offering with yields likely to fall in line with or below Saudi Arabia’s sovereign debt. Crude held near a five-month high as an escalation of fighting in OPEC producer Libya overshadowed an increase in US rigs. Emerging market currencies and shares advanced.
US banks begin reporting first-quarter earnings, led by JPMorgan and Wells Fargo. The annual Spring Meetings of the World Bank Group and the IMF begin in Washington.
The ECB will probably leave its key interest rates unchanged on Wednesday.
Investors will be looking for further details on TLTRO.
The Stoxx Europe 600 Index decreased 0.2 percent in New York, the lowest in a week. Futures on the S&P 500 Index fell 0.2 percent and the biggest fall in almost two weeks. The MSCI Asia Pacific Index gained 0.4 percent to the highest in about six months. The MSCI Emerging Market Index rose 0.6 percent, reaching the highest in almost 10 months.
The Bloomberg Dollar Spot Index dipped 0.1 percent to the lowest in two weeks. The euro gained 0.1 percent to $1.1279, the strongest in more than two weeks. The Japanese yen increased 0.3 percent to 111.13 per dollar, the strongest in more than a week. The British pound climbed 0.1 percent to $1.3072. The MSCI Emerging Markets Currency Index advanced
0.3 percent. The yield on 10-year Treasuries sank two basis points to 2.51 percent. Britain’s 10-year yield dipped one basis point to 1.109 percent.