US futures came lower than retail sales data for July, while European stocks fell as fresh quarantine rules took place in the UK Treasury yields were reduced after rising five days and the dollar was stable.
The Stoxx Europe 600 index dropped after Britain added France, the Netherlands and Malta to its list of countries where people arriving should be quarantined for 14 days. EasyJet Plc fell as much as 8% and British Airways owner IAG SA by as much as 7%.
Gold edge lowered after two days of gain, while oil advanced after a second week.
Traders continue to bank on further fiscal stimulus to help the emerging recovery, after U.S. and Asian stocks recovered most of their pandemic-related losses. Figures from retail sales on Friday will provide indications about the health of the consumer recovery following a report that weekly U.S. unemployment claims fell below $ 1 million for the first time since March.
On the virus front, Joe Biden said U.S. administrators should require masks for the next three months, while New Zealand registered 12 newly confirmed local cases of the coronavirus. Germany added the most new cases since May, while the head of the French health agency Jerome Salomon said the situation in his country is getting worse.
Here are some important events to come:
- US-China trade talks are expected the next few days.
WATCH: Joyce Chang, chair of global research at JPMorgan, wonders if there should be a change in the classic 60/40 equity bond allocation.
These are the main movements in markets:
Shares
- Futures on the S&P 500 index dipped 0.2% from 7:22 a.m. time in New York.
- The Stoxx Europe 600 index fell 1.4%.
- The MSCI Asia Pacific Index fell 0.1%.
- The MSCI Emerging Market Index fell 0.3%.
Currency
- The Bloomberg Dollar Spot Index fell 0.1%.
- The euro did not change much at $ 1.1809.
- The British pound rose 0.3% to $ 1.3101.
- The yuan on the coast weakened 0.1% to 6.95 per dollar.
- The Japanese yen strengthened 0.2% to 106.68 per dollar.
Bonds
- Yields on 10-year Treasuries dropped two basis points to 0.70%.
- The yield on two-year treasuries decreased one basis point to 0.16%.
- Germany’s 10-year yield fell less than one basis point to -0.42%.
- Japanese yield of 10 years took two basis points to 0.051%.
- Britain’s 10-year yield gained one basis point to 0.249%.
Commodities
- West Texas Intermediate crude dipped 0.1% to $ 42.20 a barrel.
- Brent crude fell 0.1% to $ 44.93 per barrel.
- Gold weakened 0.5% to $ 1,943.73 an ounce.
– With the help of Cormac Mullen
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