Tuesday , July 7 2020

European stocks fall with oil


European stocks slid while S&P 500 futures fluctuated as investors weighed scattered signs of economic improvement against the accelerating virus spread in the US, Brazil and India.
The dollar slid against all of its major peers after three days of gains. Oil futures fell below $38 a barrel in New York. The yield on Treasury five-year notes traded near a record low. Poland’s zloty strengthened after presidential election results pointed towards a run-off.
Investors began the week bracing for more risk-off sentiment as infections cases surpassed 10 million globally and a resurgence in the US continued to batter states likes Texas and Florida, with several halting plans to reopen. India’s economy is hurtling for its first contraction in more than 40 years.
“The recovery is going to be much slower and much more uneven than most people believe,” David Hunt, president and chief executive officer of PGIM Inc., said on Bloomberg TV. “Markets are priced for a much sharper V-shaped recovery, which we don’t think is likely.”
In Asia, stocks fell more than 1% in Japan, Australia and Hong Kong. They had a more modest drop in China, where markets reopened after a two-day holiday.
The Stoxx Europe 600 Index dipped 0.5% as of 9:19 am London time and futures on the S&P 500 Index fell 0.2%.
While Nasdaq 100 Index futures decreased 0.4%, the MSCI Emerging Market Index declined 0.7%.
The Bloomberg Dollar Spot Index was little changed and the euro jumped 0.3% to $1.1248. The British pound increased 0.1% to $1.2346.
While the Japanese yen was little changed at 107.17 per dollar, the offshore yuan strengthened 0.1% to 7.0762 per dollar.
The yield on 10-year Treasuries rose less than one basis point to 0.64% and Germany’s 10-year yield gained one basis point to -0.47%.
While France’s 10-year yield increased one basis point to -0.115%, Britain’s 10-year yield climbed one basis point to 0.177%.
As Brent crude dipped 2.2% to $40.10 a barrel, gold weakened 0.1% to $1,769.73 an ounce and iron ore dipped 3.2% to $94.77 per metric ton.

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