[ad_1]
(Bloomberg) – U.S. stock index futures fell and European stocks slashed gains as traders braced for the potential fallout from a forced sell wave that shook nerves and shone a record close on Wall Street. The oil slipped after the refloating of the ship blocking the Suez Canal.
Contracts on the S&P 500 shrank following revelations Archegos Capital Management LLC – Bill Hwang’s family office – was behind a $ 20 billion block-trading spree on Friday, selling giants Chinese technology and American media companies. With a number of banks reportedly exposed to Archegos, investors are on the lookout for signs of contagion. ViacomCBS Class B shares fell in pre-market operations in New York.
Nomura Holdings Inc. plunged a record amount after warning of a possible “significant” loss that would be linked to the unwinding of transactions. While Credit Suisse Group AG fell 15%, the Stoxx 600 index was little changed, gains in defensive sectors, notably food and health, were offset by losses in cyclical sectors such as banks and commodities.
“I don’t necessarily see that we’re going to have a big correction even with these ongoing block trades in the market,” Carol Pepper, CEO and founder of Pepper International, told Bloomberg TV. “There isn’t a lot of bad news lurking that is really going to cause a major correction at least in the next two to three months, so your declines are going to be modest.”
West Texas Intermediate crude slipped to 2.6% after the Ever Given bailout in a first step in reopening the Suez Canal to traffic. A gauge of the dollar rose and yields on 10-year US Treasuries slipped.
Investors are focusing on the strength of the vaccine-assisted recovery and the risks of inflation. Later this week, US President Joe Biden plans to unveil a new stimulus package with an infrastructure slant. US-China relations are also at the center of concern, after a report that Washington is not ready to lift tariffs on Chinese imports in the near future, but may be open to trade negotiations.
Elsewhere, a gauge of Asia-Pacific stocks was slightly higher.
Some key events to watch this week:
President Biden is expected to unveil his infrastructure program on Wednesday.The EIA’s crude inventory report Wednesday.OPEC + meets to discuss May production levels on Thursday.China’s PMI at Caixin is Expected Thursday. The U.S. Jobs Report for March Friday. Good Friday begins Easter weekend in the countries. including the United States, United Kingdom, France, Germany, Australia, and Canada.
Here are some of the main developments in financial markets:
Stocks
Futures contracts on the S&P 500 index fell 0.5% at 9:25 a.m. London time. The Stoxx Europe 600 index gained less than 0.1%. The MSCI Asia Pacific index gained 0.2%. The MSCI Emerging Market index rose 0.1%.
Currencies
The Bloomberg Dollar Spot Index rose 0.2%, the euro fell 0.2% to $ 1.1771, the British pound erased losses to trade at $ 1.38, the onshore yuan It declined 0.3% to 6.5624 per dollar, the Japanese yen strengthened 0.1% to 109.58 per dollar.
Obligations
The yield on 10-year Treasuries slipped two basis points to 1.66%. The yield on two-year Treasury bills fell by one basis point to 0.13%. Germany’s 10-year yield rose one basis point to -0.34%. Britain’s 10-year yield was added a basis point at 0.77%. Japan’s 10-year yield fell one basis point to 0.075%.
Basic products
West Texas Intermediate crude fell 1.1% to $ 60.31 per barrel, crude 0.6% to $ 64.20 per barrel, while gold weakened 0.4% to $ 1,725.77 per ounce.
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted source of business news
© 2021 Bloomberg LP
[ad_2]
Source link