Saturday , October 24 2020

Europe stocks snap losing streak; dollar advances

Bloomberg

European stocks rebounded and US equity futures stabilised following Monday’s declines as tech shares once again led gains. The dollar extended its biggest daily advance in three months.
Technology and auto shares including ASM International NV and United Internet AG led increases across European markets. Contracts on the S&P 500 and Nasdaq 100 indexes traded little changed following the gauges’ late market comeback on Monday. The decline in financial shares continued in Asia, following a report about suspicious worldwide banking transactions.
Treasuries steadied before Fed Chair Jerome Powell and US Treasury Secretary Steven Mnuchin speak later in the day at a Congressional panel.
Investors have been rattled by the dimming outlook for further US fiscal stimulus, rising Covid-19 cases in a number of nations and predictions of market volatility around the presidential election. US-China tensions are also simmering, with doubts emerging over whether Oracle Corp.’s deal with TikTok will win US and Chinese government assent.
“Some money is being taken off the table pre-election, and as we approach elections in the next six weeks I think there will be more of this happening,” Saed Abukarsh, senior executive officer at Ark Capital Management Dubai Ltd., told Bloomberg Television. “We’re now consolidating into a lower range in the S&P.”
Oil steadied after its biggest decline in almost two weeks on mounting worries over prolonged coronavirus restrictions and supply concerns.
The Stoxx Europe 600 Index climbed 0.7% as of 9:14 am London time and futures on the S&P 500 Index decreased 0.1%.
While Nasdaq 100 Index futures advanced 0.1%, the MSCI Asia Pacific Index declined 0.7%.
The Bloomberg Dollar Spot Index increased 0.2% and sterling strengthened 0.1% to 0.9172 per euro.
While the Japanese yen weakened 0.1% to 104.73 per dollar, the South Korean Won weakened 0.6% to 1,164.96 per dollar. The yield on 10-year Treasuries advanced less than one basis point to 0.67% and Germany’s 10-year yield increased one basis point to -0.52%.
While Britain’s 10-year yield gained two basis points to 0.178%, Belgium’s 10-year yield climbed one basis point to
-0.288%.
West Texas Intermediate crude increased 0.8% to $39.61 a barrel and gold weakened 0.6% to $1,901.36 an ounce.
While LME zinc increased 1% to $2,482.50 per metric ton, iron ore declined 1.9% to $113.73 per metric ton.

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