Stock Slide to Extend to Asia Amid Growth Worries: Markets Wrap

(Bloomberg) -- Asian stocks were set for declines after a European Central Bank cut to economic forecasts reignited concern on global growth, sending U.S. shares and bond yields lower. The euro fell to the lowest since 2017.

Futures pointed to declines for equities in Japan and Hong Kong, while Australian stocks opened lower. The S&P 500 Index sank for a fourth day, with Amazon, Microsoft, Apple and Facebook the biggest drags. The gauge closed just below its closely watched 200-day moving average that has provided support in the past. Treasuries and bunds climbed, while the dollar extended its march higher for a seventh day.

The U.S. jobs report on Friday will provide the next clues on the health of global growth after ECB President Mario Draghi delivered fresh stimulus as he downgraded the outlook for the region’s economy. The move came during a week that’s seen China cut its goal for economic expansion, the Bank of Canada dial back its expectations for policy tightening and the Organisation for Economic Co-operation and Development lowering its global outlook.

“All these different variables are beginning to come together to paint a more dismal outlook for global growth,” Lindsey Piegza, chief economist at Stifel Nicolaus & Co., told Bloomberg TV from Minneapolis. “We saw the ECB wake up to the acknowledgement of a weaker growth and inflation profile in Europe, but this is sending a broad-based signal that contagion may be coming to the U.S.”

Elsewhere, the pound was steady after the European Union was said to make a new offer to the U.K. in an attempt to break the Brexit impasse. Oil edged back above $56 a barrel in New York.

Here are some key events coming up:

• The U.S. jobs report Friday may show hiring moderated in February. Nonfarm payrolls may have increased by 180,000 while the jobless rate fell to 3.9 percent, according to estimates.
• The House of Commons votes on U.K. Prime Minister Theresa May’s revised Brexit deal on Tuesday, 20 days before Britain is scheduled to leave the EU. A similar measure was resoundingly defeated in January.

These are the latest moves in markets:

Stocks

• The S&P 500 Index fell 0.8 percent. Futures were flat.
• The MSCI Emerging Market Index sank 1.2 percent.
• Futures on Japan’s Nikkei 225 fell 0.7 percent.
• Hang Seng futures lost 0.7 percent.
• Australia’s S&P/ASX 200 Index dropped 0.3 percent.

Currencies

• The yen traded flat at 111.59 per dollar.
• The offshore yuan was flat at 6.7320 per dollar.
• The Bloomberg Dollar Spot Index climbed 0.7 percent, hitting the highest in 10 weeks Thursday.
• The euro was at $1.1191 after sinking 1 percent.
• The British pound held at $1.3083.

Bonds

• The yield on 10-year Treasuries decreased five basis points to 2.64 percent.

Commodities

• West Texas Intermediate crude slipped 0.4 percent to $56.44 a barrel.
• Gold was steady at $1,285.80 an ounce.

©2019 Bloomberg L.P.