Japan, U.S. Stock Futures Fall; Pound Declines: Markets Wrap
(Bloomberg) -- A rebound in global equities Friday may struggle to gain traction at the start of the week as futures on Japanese and U.S. stocks dipped ahead of the market open in Asia Monday. The pound slipped as a Brexit deal hung in the balance with just days to go until a critical deadline.
Contracts on Japan’s Nikkei 225 Stock Average fell, along with those on the S&P 500, following a weekend of warnings on global economic fragility from finance chiefs meeting at an annual IMF gathering. Australia’s shares opened lower. China’s ambassador to the U.S., in a rare appearance on American Sunday television, said his nation didn’t want a trade war but will respond. Oil climbed amid rising tensions between the U.S. and Saudi Arabia over a missing journalist. IMF Managing Director Christine Lagarde said policy makers should be ready for more market volatility, speaking after the worst sell-off in global stocks since February.
The gloomy remarks over the weekend contrasted with the modest recovery in stocks that was staged Friday, when news on U.S. bank earnings helped cool anxiety that corporate profits might not live up to lofty expectations. Goldman Sachs, Morgan Stanley and Netflix are among those reporting this week. Also to come: minutes from the Federal Reserve’s latest policy meeting due on Wednesday, with investors keen to follow the debate on projections for further interest rate rises.
The pound fell as a surprise Sunday visit to Brussels by U.K. Brexit Secretary Dominic Raab failed to break the deadlock. People familiar with the situation said there were signs of progress, but officials on both sides played down the chances of an imminent agreement and denied a Politico report that a deal was done.
Terminal readers can follow our Markets Live blog.
Here are some key events coming up this week:
- On Monday, the U.S. retail sales report will give clues about consumer sentiment in September. Consensus sees healthy pick-ups in both the core and headline readings.
- APEC finance ministers meet in Port Moresby, Papua New Guinea
- China’s new yuan loans may have risen to 1.36 trillion yuan ($196 billion) in September from August’s 1.28 trillion yuan as officials sought to buoy economic growth. On Tuesday, consensus is for CPI to pick up to 2.5 percent and PPI to slow to 3.6 percent.
- Third-quarter GDP for China comes Friday, with headline growth forecast to slow to 6.6 percent year on year from 6.7 percent, in addition to last month’s retail sales and factory output.
These are the main moves in markets:
Stocks
- Futures on Japan’s Nikkei 225 slipped 0.3 percent in most recent trading.
- Futures on the FTSE China A50 Index earlier rose 0.5 percent.
- Futures on Hong Kong’s Hang Seng Index fell 0.5 percent.
- Australia’s S&P/ASX 200 Index slid 0.9 percent.
- Futures on the S&P 500 dipped 0.1 percent after the benchmark tumbled 4.1 percent last week.
Currencies
- The yen was steady at 112.17 per dollar.
- The offshore yuan was at 6.9251 per dollar.
- The Bloomberg Dollar Spot Index was flat after dropping 0.3 percent last week.
- The euro slipped 0.1 percent to $1.1550.
- The British pound fell 0.4 percent to $1.3104.
Bonds
- The yield on 10-year Treasuries closed Friday at 3.16 percent, down about 7 basis points on the week.
- Australia’s 10-year bond yield fell four basis points to 2.71 percent.
Commodities
- West Texas Intermediate crude rose 1.3 percent to $72.24 a barrel.
- Gold rose 0.3 percent to $1,220.27 an ounce.
©2018 Bloomberg L.P.