Rabu, 13 Mei 2020

Stock Futures Retreat as Doubts on Rally Spread: Markets Wrap - Yahoo Canada Finance

Stock Futures Retreat as Doubts on Rally Spread: Markets Wrap

(Bloomberg) -- U.S. and European stock futures slid along with Asian benchmarks on Thursday after Federal Reserve Chair Jerome Powell warned about economic risks and big-name investors fueled doubts about valuations.

Treasuries climbed and the dollar edged up, as did the yen. Powell said the threat of a lasting downturn could deepen without additional government spending -- something not on the immediate horizon amid a divided Congress. The Australian dollar fell after data showed a record plunge of over half a million jobs in April. Crude oil ticked up, taking back some of Wednesday’s drop.

The rally in global equities from March lows is showing further signs of stalling this week amid suggestions from some investors that stocks had run up too far amid the economic uncertainty. Meantime, addressing bets on the adoption of a negative interest-rate policy, Powell said such a move was not being considered. Still, he stopped short of completely ruling the tool out as an option.

“Views are beginning to firm that the 2020 bear-market rally may have run its course,” said Matthew Sherwood, head of investment strategy for multi-asset at Perpetual Investment Management Ltd.

Powell also suggested that additional fiscal support could be needed. On that score, Republicans rejected a $3 trillion stimulus measure drafted by House Democrats, but the draft plan has the seeds for an eventual, smaller compromise.

Elsewhere, oil nudged higher as investors weighed stockpile declines against a darker outlook for demand and economic recovery. After the close of regular trading, Cisco Systems Inc. gave a sales forecast that beat Wall Street expectations, sending shares higher.

Here are some key events coming up:

U.S. weekly jobless claims data is due Thursday.China on Friday releases industrial production and retail sales data for April.

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 dipped 0.5% as of 7:09 a.m. in London. The gauge decreased about 1.7% on Wednesday.Euro Stoxx 50 futures retreated 1.1%.Japan’s Topix index declined 1.9%.MSCI Asia Pacific Index fell 1.4%.

Currencies

The yen was at 10.819 per dollar, up 0.2%.The offshore yuan held at 7.1128 per dollar.The euro bought $1.0804, little changed.The Aussie fell 0.4% to 64.30 U.S. cents.

Bonds

The yield on 10-year Treasuries dipped three basis points to 0.62%.Australia’s 10-year yield fell seven basis points to 0.89%.

Commodities

West Texas Intermediate crude rose 1% to $25.54 a barrel.Gold was at $1,715 an ounce, little changed.

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2020-05-14 06:11:15Z
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