U.S. Futures Drop as Earnings Roll In; Bonds Jump: Markets Wrap

 

 

These are the main moves in markets:

Stocks

• Futures on the S&P 500 Index dipped 1.55% as of 7:50 a.m. New York time.
• The Stoxx Europe 600 Index decreased 1.8%.
• The MSCI Asia Pacific Index advanced 0.4%.

Currencies

• The Bloomberg Dollar Spot Index gained 0.8%.
• The euro decreased 0.6% to $1.0912.
• The British pound fell 0.9% to $1.2508.

Bonds

• The yield on 10-year Treasuries dipped six basis points to 0.69%.
• Germany’s 10-year yield decreased seven basis points to -0.45%.
• Britain’s 10-year yield fell three basis points to 0.313%.

Commodities

• West Texas Intermediate crude fell 2.39% to $19.62 a barrel.
• Gold weakened 1.21 to $1,747.35 an ounce.

American equity-index futures fell on Wednesday along with stocks in Europe as a risk-off mood took hold while investors scoured corporate earnings to gauge the impact of the coronavirus outbreak. The dollar and Treasuries gained.

Contracts on all three major U.S. gauges retreated after the S&P 500 closed at a one-month high on Tuesday. Bank of America Corp. and Goldman Sachs Group Inc. fell in pre-market trading after following rivals in setting aside billions of dollars for loans likely to sour amid an extreme U.S. economic shutdown. The Stoxx Europe 600 index headed for its first drop in six sessions, led by energy companies, as crude oil in New York fell below $20 a barrel amid a global slump in demand.

Shares in Tokyo were little changed, Chinese and Hong Kong stocks slipped, and Australian equities dropped as a record slump in consumer confidence reminded investors of the impact of the pandemic on spending. The yuan dipped after China’s central bank eased policy further. Currencies of commodity producers, including Russia’s ruble, Australia’s dollar and Norway’s krone weakened.

European Union and U.S. federal officials are drafting plans to lift restrictions in an effort to mitigate the economic devastation, even as global virus infections edge closer to the 2 million mark. The earnings season should provide a better sense of how the pandemic will affect commerce as the global economy heads for a deep recession. Johnson & Johnson, JPMorgan Chase & Co. and Wells Fargo & Co. offered a mixed picture Tuesday, with Citigroup Inc. still to come

“It’s really going to be about forward guidance,” Erin Gibbs, president and CEO at Gibbs Wealth Management LLC, said on Bloomberg TV. “What we’re really going to be looking for is, are companies giving us an idea of when they think they’ll return to profitability, or, are they talking about more layoffs?”

In focus this week:

• BlackRock Inc.’s earnings are set for Thursday.
• The Bank of Canada has a rate decision Wednesday.
• Also Wednesday, U.S. retail sales are poised to fall in March by the most ever.
• China releases GDP, industrial production and retail sales and jobless figures Friday.