Bloomberg
U.S. Equity Futures Slide; Silver Contracts Gain: Markets Wrap
(Bloomberg) — U.S. equity futures fell Monday amid lingering concerns about the impact of retail trading and disappointing economic data from China. Silver futures surged in the latest manifestation of retail investor enthusiasm. S&P 500 contracts fell as much as 1% in Asia trading after the U.S. benchmark closed about 2% lower on Friday. Silver futures opened more than 7% higher. The dollar edged higher against major peers. The Australian dollar slipped after Perth in Western Australia state went into a five-day lockdown due to a coronavirus case. The yield on 10-year Treasuries ended last week around 1.07%.Global stocks retreated last week as retail trading created havoc in some U.S. shares and traders mulled an uncertain outlook for deploying coronavirus vaccines. Over the weekend, data showing a slowdown in Chinese manufacturing provided a reminder to investors that the global economic recovery from the pandemic remains fragile.Many equity markets “had a huge rally from early November supported by positive news regarding vaccines, more fiscal stimulus and monetary easing,” said Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. “This left them stretched and vulnerable to a correction which we may now be starting to see unfold as investors wait for hard evidence that the vaccines are working and that more U.S. stimulus will actually be passed by Congress.”Meantime, in China, the central bank indicated it won’t drive up borrowing costs further after concern grew about a cash squeeze. The country’s purchasing managers’ indexes showed Asia’s largest economy extended its expansion in January but lost speed more abruptly than expected.These are some key events coming up:Earnings season is full steam ahead as companies report results, including Alibaba, GlaxoSmithKline, Ferrari, Exxon Mobil, BNP Paribas and Yum! Brands.The Reserve Bank of Australia’s policy decision comes Tuesday.Wednesday sees the EIA crude oil inventory report.The Bank of England sets rates on Thursday and an Indian central bank policy decision comes then too.The U.S. January payrolls report is due Friday, providing a first look at hiring in 2021.Here are the main moves in markets:StocksS&P 500 futures lost 0.4% as of 8:01 a.m. in Tokyo. The gauge fell 1.9% on Friday.Futures on Japan’s Nikkei 225 rose 0.2% on Friday.Hang Seng Index futures dropped 0.4% on Friday.Australia’s S&P/ASX 200 Index dipped 0.1%.CurrenciesThe yen dipped 0.1% to 104.76 per dollar.The offshore yuan was at 6.4502 per dollar.The euro bought $1.2132.The Aussie slipped 0.3% to 76.25 U.S. cents.The kiwi declined 0.4% to 71.62 U.S. cents.BondsThe yield on 10-year Treasuries rose to 1.07% on Friday.CommoditiesWest Texas Intermediate crude ended last week at $52.20 a barrel.Gold was at $1,847.65 an ounce on Friday.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
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