US equity futures fell, suggesting that the rally that drove the S&P 500 to an all-time high could come to a halt as concerns about China are holding back credit growth and optimism fueled by the US economic recovery.
Contracts on the S&P 500 slid along with those on the Nasdaq 100 after major US tech stocks rallied Monday, including a rise from Facebook Inc. to a new peak. The interest on dollars and treasury bonds was stable. European stocks, meanwhile, have risen to one record as markets reopened after Monday’s holiday in the region.
Data from the US continued to point to an economic recovery as more Americans are vaccinated against the coronavirus, restrictions are rolled back and fiscal measures are taken. But other parts of the world are still struggling to curb the pandemic and are lagging behind in terms of vaccinations. In China, the central bank has asked the country’s top lenders to curtail credit growth for the remainder of this year, according to people familiar with the matter.
“It seems spectacular US data has a few caveats that apply to the assumption that all boats are lifting,” said Vishnu Varathan, chief economics and strategy at Mizuho Bank Ltd. in Singapore. First, there is a sense that vaccine differences can lead to an uneven recovery. Worse, it could also mean that you will face higher yields on US Treasuries in a more vulnerable state, ”he said, especially for emerging markets.
The Stoxx Europe 600 index erased pandemic-related losses, with cyclical companies such as miners, car manufacturers and banks being the biggest winners. The markets in the region were closed on Monday. BP Plc rose more than 3% after saying it could reboot share buybacks earlier than expected as it reduced indebtedness.
Credit Suisse Group AG Slipped After Collection Of 4.4 Billion Francs ($ 4.7 Billion) depreciation in connection with the implosion of Archegos Capital Management. The couch About $ 2.3 billion worth of stock was discharged from the family office more than a week ago, after some rivals dumped their stocks and avoided the losses.
The oil rebounded as expectations of a breakthrough in talks to revive an Iranian nuclear deal were scaled back, reducing the likelihood that oil flows out of the country would further increase.
Margaret Yang, strategist at DailyFX, discusses what the dollar needs to do to keep going up.
Some important events to watch this week:
- The 2021 spring meetings of the International Monetary Fund and the World Bank Group will take place virtually. US Treasury Secretary Janet Yellen is one of the participants in a climate discussion on Tuesday. Jerome Powell, chairman of the Federal Reserve, will participate in a panel on the global economy on Thursday.
- The Fed will publish minutes of the March meeting on Wednesday.
- Japan will announce its balance of payments figures on Thursday.
- Chinese consumer and producer prices are expected on Friday.
These are some of the main movements in markets:
Shares
- S&P 500 futures are down 0.2% from 9:03 am in London. Nasdaq 100 futures were down 0.3%.
- The Stoxx Europe 600 index rose 0.8%.
- The MSCI Asia-Pacific Index fell 0.3%.
- MSCI’s Emerging Market Index rose 0.3%.
Currencies
- The Bloomberg Dollar Spot Index was flat.
- The yen fell 0.1% to 110.32 per dollar.
- The euro remained stable at $ 1.1818.
- The British pound fell 0.2% to $ 1.3878.
Bonds
- The yield on 10-year government bonds rose by one basis point to 1.72%.
- The German 10-year yield increased by three basis points to -0.30%.
- The UK 10-year yield rose by four basis points to 0.83%.
Raw materials
- West Texas Intermediate crude oil rose 1.9% to $ 59.75 a barrel. It fell by 4.6% in the previous session.
- Gold added 0.3% to $ 1.7232.90 an ounce.
– With the assistance of Andreea Papuc and Joanna Ossinger