The end-of-quarter rebound in global equities cooled as investors assessed the latest efforts toward more US fiscal stimulus and the rising toll of the pandemic.
European stocks opened lower, led by declines in banks including Spain’s Banco Santander SA. S&P 500 futures slipped after the US gauge climbed the most in more than two weeks Monday.
The pound was steady amid speculation that successful Brexit trade talks could help shield Britain from a messy rupture with the European Union. A gauge of emerging-market stocks was little changed, on track for its second quarterly increase.
As the global death toll from the pandemic exceeds one million, investors are looking for direction. They’re reviewing a scaled back $2.2 trillion proposal by Democrats and awaiting the first presidential debate Tuesday, where Democratic presidential candidate Joe Biden may face tough questions on how he would approach China if he wins in November.
“We definitely need another round of stimulus here, not only for confidence for the American public and workers, but also for the markets,” Michelle Connell, owner and president of Portia Capital Management, said on Bloomberg Television. “Going into this election, that would definitely help.”
Earlier in Asia, Japan stocks ended lower as many traded without the right to dividends. South Korea outperformed and China rose modestly, while Hong Kong fell.
Here are some key events coming up:
- On Tuesday, the first US presidential debate will take place between President Donald Trump and Democratic opponent Joe Biden.
- China purchasing manager indexes are due Wednesday, and expected to show September manufacturing improved slightly while non-manufacturing moderated from August’s level.
- The EIA crude oil inventory report comes out Wednesday.
- The September US employment report on Friday will be the last before the November election.
These are the main moves in markets:
- The Stoxx Europe 600 Index declined 0.5% as of 8:17 a.m. London time.
- Futures on the S&P 500 Index decreased 0.3%.
- Nasdaq 100 Index futures dipped 0.4%.
- The MSCI Asia Pacific Index fell 0.1%.
- The Bloomberg Dollar Spot Index climbed 0.1%.
- Sterling was little changed at 0.909 per euro.
- The Japanese yen weakened 0.2% to 105.69 per dollar.
- South Africa’s rand weakened 0.6% to 17.1646 per dollar.
- The yield on 10-year Treasuries fell less than one basis point to 0.65%.
- Germany’s 10-year yield declined one basis point to -0.54%.
- Britain’s 10-year yield decreased one basis point to 0.195%.
- Italy’s 10-year yield dipped one basis point to 0.871%.
- West Texas Intermediate crude declined 0.9% to $40.24 a barrel.
- Gold edged down 0.1% to $1,879.09 an ounce.
- Silver slipped 0.5% to $23.55 per ounce.
- Iron ore increased 1.7% to $116.45 per metric ton.
© 2020 Bloomberg