U.S. Futures Drop on China Pausing Some Imports: Markets Wrap - Yahoo Canada Finance

U.S. Futures Drop on China Pausing Some Imports: Markets Wrap

(Bloomberg) -- U.S. stock-index futures fell after Chinese officials told agriculture companies to pause imports of some American farm goods. European shares climbed with the euro.

Contracts on the S&P 500 and the Nasdaq 100 gauges slid after Bloomberg reported that state-owned traders Cofco and Sinograin were ordered to suspend purchases. It’s the latest sign that the phase-one trade deal is in jeopardy amid a standoff between the two countries.

“There is no reason to expect these tensions to ease anytime soon,” Marc Ostwald, chief economist and global strategist at ADM Investor Services International in London, in comments to Bloomberg. “This will continue to provide a flow of headlines to trip up market optimism, and it suggests that volatility will remain very elevated.”

Markets seemed relatively unfazed by the violent protests over the weekend that spread from New York to Chicago. Travel companies and banks led gains in the Stoxx Europe 600 Index, and copper advanced in London trading. Germany and Switzerland were closed for a holiday.

A gauge of the dollar stayed near its weakest level since March. Asia’s session saw more risk-on sentiment. U.S. President Donald Trump on Friday stopped short of specifying tough sanctions over China’s new national security law for Hong Kong.

Here are some key events coming up:

Australia’s central bank is expected to keep its main policy programs unchanged on Tuesday. So too is the case for Canada, which has options to add stimulus but is forecast to stand pat on Wednesday to allow more time to evaluate the progress of policy action.In Europe, the ECB is expected to top up its rescue program with an additional 500 billion euros of asset purchases. Anything less than an expansion at Thursday’s meeting would be a big shock, Bloomberg Economics said.The U.S. labor market report on Friday will probably show American unemployment soared to 19.6% in May, the highest since the 1930s.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index declined 0.2% as of 10:46 a.m. London time.The Stoxx Europe 600 Index rose 0.7%.Hong Kong’s Hang Seng Index climbed 3.4%.The MSCI Asia Pacific Index climbed 1.6%.

Currencies

The Bloomberg Dollar Spot Index dipped 0.3%.The euro gained 0.1% to $1.1116.The British pound increased 0.4% to $1.2397.The Japanese yen strengthened 0.2% to 107.60 per dollar.The Australian dollar jumped 1% to $0.673.

Bonds

The yield on 10-year Treasuries gained one basis point to 0.66%.Germany’s 10-year yield climbed three basis points to -0.42%.Britain’s 10-year yield rose two basis points to 0.206%.

Commodities

West Texas Intermediate crude decreased 0.8% to $35.21 a barrel.Gold strengthened 0.3% to $1,735.95 an ounce.LME copper rose 0.5% to $5,403.50 per metric ton.

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2020-06-01 09:57:00Z
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