September 29, 2020

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European Stocks Advance While Nasdaq Futures Slide: Markets Wrap

(Bloomberg) — European stocks climbed as analysts speculated the market could be relatively resilient as...

(Bloomberg) — European stocks climbed as analysts speculated the market could be relatively resilient as Asian and U.S. markets start pulling back. The pound weakened on concern the U.K. is inching closer to a no-deal Brexit.The Europe Stoxx 600 opened higher on Monday with broad gains across industry groups. The dollar index strengthened, while oil slumped on a price reduction by Saudi Arabia. Treasury yields were little changed.Stock futures pointed to further losses for American shares when markets re-open on Tuesday after the Labor Day holiday. Nasdaq futures slid 1.1% and contracts on the S&P 500 were down 1.3%. Valuation is emerging as a concern for U.S. investors and there’s also nervousness about extreme positions in technology stocks. Global equities fell the most since June last week as doubt crept into investors minds about whether equities have risen too quickly and valuations are reaching extremes. U.S. technology shares, which have seen a powerful rally through the depths of the pandemic, showed signs of buckling at the end of the week amid reports that huge options bets were fanning their gains. SoftBank Group Corp. shares slumped 7% after reports that the Japanese conglomerate made massive bets on options trades linked to U.S. tech stocks.Nasdaq Futures Resume Declines With Valuation Angst Lingering”I don’t think this is a start of a downturn in asset prices,” said Robert Greil, chief strategist at Merck Finck Privatbankiers AG in Munich. “We’re only in the first phase of the economic recovery, which makes a major downturn unlikely. Naturally, setbacks are buying opportunities in such an environment.”In China, data on Monday continued to suggest a patchy recovery. Exports continued to expand in August as the country’s major trading partners gradually resumed business activities, though imports unexpectedly dropped.Here are some key events coming up:The next Brexit negotiating round begins with face-to-face discussions between the U.K. and the EU in London.The ECB will probably hold rates on Thursday but indicate that downside risks have intensified, suggesting further easing is possible before year-end.U.S. CPI data is due Friday, with consumer prices expected to rise in August for a third straight month.These are the main moves in markets:StocksFutures on the S&P 500 Index fell 0.3% as of 10:02 a.m. London time.The Stoxx Europe 600 Index added 0.9%.The MSCI Asia Pacific Index dipped 0.3%.The MSCI Emerging Market Index fell 0.5%.CurrenciesThe Bloomberg Dollar Spot Index advanced 0.2%.The euro declined 0.1% to $1.1832.The British pound decreased 0.5% to $1.3194.The Japanese yen was little changed at 106.23 per dollar.The offshore yuan was little changed at 6.8357 per dollar.BondsThe yield on 10-year Treasuries was unchanged at 0.72%.Germany’s 10-year yield increased one basis point to -0.46%.Britain’s 10-year yield was little changed at 0.26%.Japan’s 10-year yield climbed one basis point to 0.044%.CommoditiesWest Texas Intermediate crude fell 1.8% to $39.06 a barrel.Brent crude sank 1.5% to $42.03 a barrel.Gold weakened 0.2% to $1,931.27 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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