U.S. Futures Drift After Retail Data; Dollar Drops: Markets Wrap

(Bloomberg) -- U.S. futures fluctuated after the rebound in American retail sales slowed sharply in July, while European stocks slumped as fresh quarantine rules took hold in the U.K.

Treasuries were steady and the dollar weakened after the value of retail purchases increased 1.2% from the prior month after an upwardly revised 8.4% gain in June. The Stoxx Europe 600 Index sank after Britain added France, the Netherlands and Malta to its list of countries from which people arriving have to quarantine for 14 days.

Gold edged lower following two days of gains, while oil headed for a second weekly advance.

Traders continue to bank on further fiscal stimulus to help the nascent recovery even as negotiations over a new coronavirus relief plan remain at a standstill. Retail sales figures published Friday undershot expectations, illustrating the slow path to a consumer recovery.

“Economic data of late have presented investors with a glimmer of hope but the outlook remains resolutely gloomy, especially with diminished fiscal support to U.S. consumers,” Antoine Bouvet, senior rates strategist at ING Bank, wrote in a note published before the retail report.

On the virus front, Joe Biden said U.S. governors should require masks for the next three months, while New Zealand recorded 12 new confirmed local cases of the coronavirus. Germany added the most new cases since May, while the head of the French Health Agency Jerome Salomon said the situation in his country is worsening.

Here are some key events coming up:

These are the main moves in markets:

Stocks

• Futures on the S&P 500 Index were little changed at 8:38 a.m. New York time.
• The Stoxx Europe 600 Index sank 1.1%.
• The MSCI Asia Pacific Index was little changed.
• The MSCI Emerging Market Index fell 0.3%.

Currencies

• The Bloomberg Dollar Spot Index fell 0.2%.
• The euro increased 0.1% to $1.1826.
• The British pound climbed 0.5% to $1.3126.
• The onshore yuan weakened 0.1% to 6.95 per dollar.
• The Japanese yen strengthened 0.3% to 106.65 per dollar.

Bonds

• The yield on 10-year Treasuries declined one basis point to 0.71%.
• The yield on two-year Treasuries dipped one basis point to 0.16%.
• Germany’s 10-year yield decreased less than one basis point to -0.41%.
• Japan’s 10-year yield jumped two basis points to 0.051%.
• Britain’s 10-year yield rose one basis point to 0.257%.

Commodities

• West Texas Intermediate crude decreased 0.1% to $42.18 a barrel.
• Brent crude dipped 0.2% to $44.88 a barrel.
• Gold weakened 0.4% to $1,946.75 an ounce.

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