Stock futures slide, bonds rise after US jobs data - BNN

Stocks fell and Treasuries climbed after a surprise increase in U.S. jobless claims added to concern the recovery from the pandemic-induced recession will need more time.

The S&P 500 moved away from its all-time high reached on Tuesday. Nvidia Corp. slumped after suggesting that growth of its data-center business will slow. Meanwhile, Intel Corp. rose on an announcement that it’s entering into accelerated agreements to buy back US$10 billion of shares.

Equities extended losses into a second day on speculation that a rally of more than 50 per cent from March lows has outpaced prospects for an economic rebound amid stalled negotiations on further stimulus measures. Federal Reserve minutes released on Wednesday signaled tempered optimism about growth in the second half of 2020, with policy makers noting that the health crisis would “weigh heavily” on activity.

“It remains to be seen whether sentiment towards risk has turned decisively negative or whether it was just profit-taking and a short-term pullback from overbought levels,” according to Fawad Razaqzada, an analyst at ThinkMarkets. “It is important not to jump to any conclusions.” It is very difficult to remain bullish on U.S. equities without witnessing a correction first, he said.

These are some of the main moves in markets:

Stocks

The S&P 500 fell 0.5 per cent as of 9:30 a.m. New York time.
The Stoxx Europe 600 Index decreased 1.2 per cent.
The MSCI Asia Pacific Index sank 1.6 per cent.

Currencies

The Bloomberg Dollar Spot Index gained 0.2 per cent.
The euro fell 0.2 per cent to US$1.1818.
The Japanese yen strengthened 0.2 per cent to 105.94 per dollar.

Bonds

The yield on 10-year Treasuries declined four basis points to 0.64 per cent.
Germany’s 10-year yield decreased three basis points to -0.51 per cent.
Britain’s 10-year yield fell two basis points to 0.214 per cent.

Commodities

The Bloomberg Commodity Index declined 0.9 per cent.
West Texas Intermediate crude decreased 2.3 per cent to US$41.95 a barrel.
Gold strengthened 0.2 per cent to US$1,932.85 an ounce.

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2020-08-20 12:44:18Z
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