U.S. Futures Fall With Stocks on Growth Concern: Markets Wrap

(Bloomberg) -- U.S. futures fell with stocks on Monday as concerns about the global economic outlook weighed on risk sentiment. Treasuries rose.

Contracts on key U.S. gauges slipped following a record close for Wall Street on Friday. European equities fell from an all-time high, with data showing German business confidence unexpectedly fell in July. Shares in China and Hong Kong tumbled amid a selloff in education tech companies after Beijing announced sweeping reforms of the industry.

The real yield on U.S. 10-year debt fell to a record low on mounting concern the delta virus variant will derail the economic recovery. Treasuries rose ahead of this week’s Federal Reserve meeting, at which officials will likely discuss the outlook for stimulus.

While investors have cheered a positive start to the earnings season so far, concerns linger about the pace of economic growth and inflation. A slew of earnings this week from Wall Street giants including Apple Inc. and Tesla Inc. may provide clues on the corporate recovery and outlook.

“The second half of the year is going to be this glass half-full, half-empty context” spanning monetary and fiscal support and good earnings but also concern about the virus, Virginie Maisonneuve, Allianz Global Investors global chief investment officer for equities, said on Bloomberg Television.

Trade tension is on the radar too. China lashed out at U.S. policies in a tense start to high-level talks in Tianjin, declaring the relationship between the world’s two largest economies in a “stalemate.”

Elsewhere, Bitcoin jumped toward $40,000, continuing a recent rally. Cryptocurrency-linked stocks including MicroStrategy Inc. and Coinbase Global Inc. also climbed in U.S. premarket trade.

Crude oil declined, while the Japanese yen outperformed in the Group-of-10 currencies amid a mood of caution.

Here are some key events to watch this week:

• Tesla, Alphabet, Apple, Facebook, Amazon report earnings this week
• Federal Reserve policy meeting concludes Wednesday
• U.S. GDP data are due Thursday

These are some of the main moves in markets:

Stocks

• Futures on the S&P 500 fell 0.2% as of 6:02 a.m. New York time
• Futures on the Nasdaq 100 were little changed
• Futures on the Dow Jones Industrial Average fell 0.3%
• The Stoxx Europe 600 fell 0.4%
• The MSCI Asia Pacific Index fell 1%

Currencies

• The Bloomberg Dollar Spot Index fell 0.2%
• The euro rose 0.2% to $1.1798
• The British pound rose 0.4% to $1.3797
• The Japanese yen rose 0.2% to 110.30 per dollar

Bonds

• The yield on 10-year Treasuries declined three basis points to 1.24%
• Germany’s 10-year yield was little changed at -0.42%
• Britain’s 10-year yield declined one basis point to 0.57%

Commodities

• West Texas Intermediate crude fell 0.6% to $71.66 a barrel
• Gold futures rose 0.4% to $1,812.40 an ounce

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