(Bloomberg) — European and U.S. stock futures fell as persistent concerns about China’s economy weighed on global markets, despite encouraging company news and earnings results.
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The Stoxx Europe 600 index fell, on track to end a four-day streak of gains, leaving it within two points of its January 2022 all-time high on Monday. European government bonds rose, and German 10-year bond yields fell by about 3 basis points.
The Bloomberg Industrial Metals Index fell 0.7% as miners Anglo American and Rio Tinto led the decline in basic resources stocks as iron ore prices slumped. Sandoz Group fell more than 7% after Morgan Stanley downgraded the Swiss drugmaker’s share price, citing short-term uncertainty.
The chemicals subsector outperformed, rising more than 4% after French gas producer Air Liquide beat analysts’ expectations for profit growth. Barclays soared as much as 6% following the announcement of its capital return plan. Evolution AB rose nearly 5% after US regulators concluded an investigation into the Swedish online gambling company.
S&P 500 and Nasdaq 100 futures fell as U.S. financial markets are set to reopen after the holiday on Monday. 10-year Treasury yields stabilized ahead of the 40-year auction. Dollar indicators were little changed.
As investors try to gauge the strength of the global economy, Wednesday’s gains from flag-bearer Nvidia could provide fresh impetus to stocks. The semiconductor giant has surpassed Amazon.com Inc.’s market capitalization on hopes that it will be a big winner in the development of artificial intelligence.
“Nvidia’s results on Wednesday could be a turning point for the market,” Charles Henry Montchaux, Banc Sys’ chief investment officer, said on Bloomberg TV. “There are very few large-cap growth stocks that the market relies on, and there is a risk of a pullback if they fail to meet expectations for any reason.”
Elsewhere, Asian stocks fell after China’s lower mortgage rates failed to ease concerns about the world’s No. 1 mortgage lender. 2 Economy. Benchmarks for Japan, Australia and South Korea were all in the red. Chinese stocks rose and fell wildly.
Willer Chen, an analyst at Forsyth Barr Asia, said the five-year loan prime rate cut was “a good move by commercial banks, but the real estate issue is still not about mortgage rates.” Demand for real estate will increase, but we cannot expect much. ”
healthy demand
In Australia, BHP Group, the world’s largest mining company, reported underlying profits of $6.57 billion, below consensus expectations, and despite a weak housing market, demand from top customer China He said it was healthy.
In other corporate news, Capital One Financial Corp. has agreed to acquire Discover Financial Services in a $35 billion all-stock deal, creating the largest U.S. credit card company by loan value.
Other potential catalysts for markets this week include the Fed’s January meeting minutes to be released on Wednesday and euro zone inflation data to be released on Thursday.
Elsewhere, gold was little changed after rising slightly on Monday to trade around $2,020 an ounce. West Texas Intermediate crude oil prices rose slightly due to continued tensions in the Red Sea, a key trade route.
Some of this week’s main events:
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The European Central Bank releases an indicator of euro area bargained wage rates on Tuesday
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Rio Tinto Plc earnings, Wednesday
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Eurozone consumer confidence Wednesday
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Nvidia Corp Wednesday’s earnings
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US Federal Reserve Board (FRB) January Meeting Minutes, Wednesday
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Atlanta Fed President Rafael Bostic speaks Wednesday
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Eurozone CPI, PMI, Thursday
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European Central Bank publishes report of January 25 meeting on Thursday
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Fed President Lisa Cook and Minneapolis Fed President Neel Kashkar speak on Thursday
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Chinese real estate prices Friday
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European Central Bank Board Member Isabel Schnabel speaks on Friday
The main movements in the market are:
stock
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Stoxx Europe 600 little changed as of 9:18 a.m. London time
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S&P 500 futures fell 0.2%
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Nasdaq 100 futures fell 0.2%
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Dow Jones Industrial Average futures fell 0.2%.
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MSCI Asia Pacific index little changed
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MSCI Emerging Markets Index rose 0.1%
currency
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Bloomberg Dollar Spot Index little changed
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The euro was almost unchanged at $1.0784.
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The Japanese yen fell 0.1% to 150.30 yen to the dollar.
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The offshore yuan was almost unchanged at 7.2075 yuan to the dollar.
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The British pound was almost unchanged at $1.2603.
cryptocurrency
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Bitcoin fell 0.5% to $51,641.32.
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Ether fell 2.3% to $2,900.15.
bond
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The 10-year government bond yield was almost unchanged at 4.28%.
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German 10-year bond yields fell 3 basis points to 2.38%.
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UK 10-year bond yields fell 3 basis points to 4.07%.
merchandise
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Brent crude oil fell 0.3% to $83.32 per barrel.
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Spot gold rose 0.3% to $2,023.63 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Richard Henderson and Michael Musica.
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