(Bloomberg) – European stocks have fallen the most since July after a report on bank allegations and signals that London is heading for a second bloc. US stock futures sank and Treasuries rose.
Airlines and travel companies reported losses in the Europe Stoxx 600 Index. HSBC Holdings Plc has dipped to a low since 1995 and shares of European banks have fallen following a story by the International Consortium of Investigative Journalists on deficiencies in activity reports suspicious.
With cases of the virus growing across Europe, speculation grows that officials will be forced to apply tougher restrictions and risk crippling economic growth. Chief Medical Officer Chris Whitty will come on Monday that the UK is at a “tipping point”
The traders also said the US political battle over who will be the next Supreme Court judge is weighing on sentiment as well. Senate Majority Leader Mitch McConnell said he will schedule a vote to confirm Donald Trump’s candidate to succeed justice Ruth Bader Ginsburg after her death on Friday. But Democrats are battling efforts to rush the vote, with presidential candidate Joe Biden warning that he would “inflict irreversible damage” on the country.
Speculators are the most bearish on the Nasdaq-100 since 2008: chart
“The market remains concerned about the broader risk emulating from the US: Covid, the battle of the Supreme Court and the upcoming presidential election,” said Peter Rosenstreich, head of market strategy at Swissquote Bank SA. “With US tech stocks looking weak, the need to jump straight to US assets seems less critical.”
In Asia, equity trading was moderate. The Japanese stock market was closed for a holiday. The Hang Seng Index slid 1.5%, while China and Australian stocks fell. The Taiwan dollar strengthened to a level not seen in seven years.
Elsewhere, the European Central Bank has embarked on a review of its pandemic bond buying program to assess how long it should continue and whether its exceptional flexibility should be extended to older programs, the Financial Times reported.
While global equity valuations remain close to the nearly two-decade high, fund flow data shows that money continues to move into US equities. With the Fed anchoring interest rates close to zero for the foreseeable future, profits should recover slightly from the pandemic-induced malaise.
“There are too many expectations on the economic resilience of the United States,” said Fabrizio Fiorini, chief investment officer of Pramerica SGR SpA. “There are more sales on the way. The electoral risk is underestimated “.
These are the main moves in the markets:
S&P 500 Index futures fell 1% at 9:16 am London time, Stoxx Europe 600 Index fell 1.6%, MSCI Asia Pacific Index fell 0.4% , the MSCI Emerging Market Index fell 0.7%.
The Bloomberg Dollar Spot Index fell 0.1%, the Euro rose 0.1% to $ 1.1824, the British Pound gained 0.2% to $ 1.2867, the Japanese Yen rose. strengthened 0.5% to 104.11 per dollar, the offshore yuan strengthened 0.2% to 6.7714 per dollar.
The 10-year Treasury bond yield fell two basis points to 0.66%. The yield on two-year Treasuries fell by less than one basis point to 0.14%. Germany’s 10-year yield fell by one basis point to -0.51%. the yield fell by one basis point to 0.156%. Japan’s 10-year yield fell by less than one basis point to 0.015%.
West Texas Intermediate crude fell 1.3% to $ 40 a barrel, Brent crude fell 1.3% to $ 42.13 a barrel, and gold strengthened 0.1% a barrel. $ 1,946.48 an ounce.
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