Friday, January 21

US Futures Fall As Investors See Gloomy Week: Markets Wrap Up


US stock index futures tumbled and the dollar extended a rally as staggering growth and China’s regulatory restrictions compounded risks ahead of the Federal Reserve symposium in Jackson Hole next week.

September contracts in the S&P 500 index fell 0.6% after the underlying indicator ended a choppy session with a gain on Thursday. The dollar rose for a fifth day, its longest winning streak in two months. Treasury yields continued to decline. The massive sale of raw materials eased.

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Investors are fleeing to the safety of Treasuries and the dollar, generating inflows into US markets that cushion the impact of a global sell-off in New York-listed stocks. However, the rapid spread of the delta virus variant, China’s ever-increasing crackdown on big tech, and concerns about valuations are fueling expectations of a correction.

“Covid’s delta variant is significantly more serious than anyone else is actually trading on the market,” Hilary Kramer, chief investment officer at Kramer Capital Research, said on Bloomberg Television. “We know that the set-up is coming. We know that the market is getting tired ”.

European stocks had no respite from Thursday’s selloff amid continued pandemic risks. The benchmark Stoxx Europe 600 was heading for the biggest weekly loss since February. MSCI Inc.’s Asia-Pacific indicator was the lowest since approximately November. Stocks fell in China and Hong Kong was poised for a bear market.

The stricter rules for handling user data are Beijing’s latest step against big technology. Alibaba Group Holding Ltd. hit another all-time low and will be seen when pre-trade trading begins in the US Analysts warned that expirations of options expiring on Friday in the US may fuel volatility.

Crude oil advanced for the first time in seven days, with West Texas Intermediate futures trading just below $ 64 a barrel. Iron ore and copper also cut weekly losses.

Bitcoin spread the gains to a second day and traded above $ 47,000 each.

Some of the main movements in the markets:

Stocks

  • The Stoxx Europe 600 fell 0.3% at 8:28 am London time.
  • S&P 500 futures fell 0.6%
  • Nasdaq 100 futures fell 0.4%
  • Dow Jones Industrial Average futures fell 0.7%
  • The MSCI Asia Pacific Index fell 1.1%
  • The MSCI emerging markets index fell 1.1%

Currencies

  • Bloomberg’s dollar spot index rose 0.2%
  • The euro changed little at $ 1.1681.
  • The Japanese yen rose 0.1% to 109.62 per dollar
  • The offshore yuan fell 0.1% to 6.5080 per dollar.
  • The British pound fell 0.2% to $ 1.3611.

Captivity

  • The 10-year Treasury yield fell two basis points to 1.23%.
  • Germany’s 10-year yield changed little to -0.50%
  • The UK 10-year yield fell one basis point to 0.53%.

Raw Materials

  • Brent crude rose 0.5% to $ 66.80 a barrel
  • Spot gold rose 0.4% to $ 1,787.42 an ounce

© 2021 Bloomberg


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