[ad_1]
- The oil jump leads the energy sector higher
- Chinese stocks fall again
- US durable goods data
Persistent concerns over trade kept global stocks under pressure and backed government bonds on Wednesday, though gains in oil prices boosted oil and gas stocks.
The Stoxx Europe 600 stagnated in the middle of the day, wiping out losses earlier, while futures predicted a 0.4% decline in opening for the S & P 500 and a stronger decline for Nasdaq. Asian equities closed lower, with losses accelerating at the end of the session.
Investors have weighed signals from the US and China about the future of their trading relationships, which some worry may hurt growth prospects. The Chinese Ministry of Commerce said on Wednesday it was closely monitoring potential US initiatives aimed at restricting Chinese investment, as trade tensions intensify between the two countries.
The central bank of China has separately guided the yuan to a six-month low against the US dollar, causing the Chinese currency to fall. The fall of the yuan has accelerated since trade threats between China and the United States intensified in mid-June.
"The last week was a little painful," said
Terry Sandven,
chief equity strategist at U.S. Bank Wealth Management. "It's clear that uncertainties and volatility are rising," he said, although he believes that many market moves are technically motivated and is expected to make the US market remains supported by solid earnings once the second quarter results are released.
The weakness of Chinese equities swept the Asian markets on Wednesday. Japan's Nikkei Stock Average fell 0.3% while the yen's appreciated against the dollar and Hong Kong's Hang Seng fell 1.8%, a Hong Kong index of Chinese shares traded in the city has entered the bear market.
The Shanghai Composite Index lost 1.1% after entering a bear market on Tuesday.
"Beyond escalating trade tensions, several factors are combining to darken the outlook for the global economy," Nomura strategists wrote, pointing to signs of slowing investment in the Chinese economy and fragility in Europe. .
On Wednesday, European bank stocks were under pressure as a result of lower yields on government bonds. Treasuries at 10 years fell to 2.848% against 2.82% Tuesday afternoon in New York and their German counterparts fell to 0.323% against 0.336%. Yields move inversely to prices.
Commodity-related companies performed well in Europe, with the oil and gas sector rising 1%, reflecting higher oil prices. Brent crude was up 0.7% to $ 76.70 a barrel, up 2.1% on Tuesday after the US threatened to punish countries that did not stop trading. import Iranian oil in early November.
Equity gains in energy companies also pushed up US equities on Tuesday after a difficult start to the week as trade tensions put pressure on global markets. However, the shares of
Brands Conagra
have been among the largest marketers in the US pre-market market following the purchase of Pinnacle Foods.
The Commerce Department will release data on US durable goods later on Wednesday, which are often monitored for a recovery in capital spending.
-Saumya Vaishampayan contributed to this article.
Write to Riva Gold at [email protected]
Source link
