(Bloomberg) — European stocks and U.S. stock futures fell Wednesday, with sentiment under pressure on concerns about tighter U.S. trade restrictions on China.
Bloomberg’s most read articles
The fall in technology stocks dragged down Europe’s Stoxx 600, with Dutch chipmaker ASML Holding NV falling nearly 8% as concerns about possible restrictions on its exports to China outweighed news of better-than-expected orders in the second quarter.
The S&P 500 fell 0.5%, while the Nasdaq 100 declined 0.9%. MSCI’s Asia-Pacific index pared gains as semiconductor equipment maker Tokyo Electron Ltd. posted its biggest decline in three months on concerns over U.S.-China relations.
The Biden administration, facing pushback over its chip crackdown on China, has told allies it will consider using the toughest trade restrictions available if companies such as Tokyo Electron and ASML continue to give the country access to advanced semiconductor technology.
The pound hit a daily high against the dollar and traders trimmed bets on a Bank of England interest rate cut in August after U.K. inflation beat economists’ forecasts. The consumer price index held steady at the BOE’s 2% target for a second straight month in June, but showed stubborn price pressures in the services sector.
Treasury yields edged up after Tuesday’s decline. The dollar was steady.
Optimism about an upcoming rate cut by the Federal Reserve, as well as signs of resilience in the US retail sector, have supported risk sentiment in recent sessions, while the growing likelihood of a Donald Trump presidency has raised concerns about geopolitical and trade risks.
“We have a complex matrix of drivers,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “The impending Fed easing should help the rotation into small caps and tech, but equally, Trump 2.0 increases the uncertainty associated with geopolitics and trade.”
As the S&P 500 hit a new all-time high on Tuesday, there has been a rotation into U.S. small caps. The Russell 2000 index rose 12% in the five sessions through Tuesday, its best showing since April 2020.
In other sector news, Adidas AG rose 5% after raising its annual profit target for the second time in three months. Roche Holding AG jumped 7.4% after promising preliminary results from studies on its experimental weight-loss pill. Shares in Demant A/S fell 14% as the Danish hearing aid group warned of full-year growth after preliminary second-quarter results fell short of expectations.
Main events of the week:
Eurozone CPI, Wednesday
U.S. Housing Starts, Industrial Production, Wednesday
Fed Beige Book, Wednesday
Fed Chairman Thomas Barkin Speaks Wednesday
ECB interest rate decision on Thursday
U.S. Initial Jobless Claims, Philadelphia Fed Manufacturing, Conference Board LEI, Thursday
Fed members Mary Daly, Lorie Logan and Michelle Bowman speak Thursday
Fed members John Williams and Raphael Bostic speak Friday
Some of the main movements in the markets:
Actions
The Stoxx Europe 600 fell 0.3% at 8:35 a.m. London time.
S&P 500 futures fell 0.5%
Nasdaq 100 futures fell 0.9%
Dow Jones Industrial Average futures fell 0.2%
The MSCI Asia-Pacific index rose 0.3%
The MSCI emerging markets index fell 0.3%
Currencies
The Bloomberg Dollar Spot Index fell 0.1%
The euro rose 0.1% to $1.0911
The Japanese yen rose 0.7 percent to 157.18 per dollar.
The offshore yuan rose 0.1 percent to 7.2785 per dollar.
The pound rose 0.2% to $1.3000
Cryptocurrencies
Bitcoin rose 1% to $65,316.07
Ether rose 1.3% to $3,485.52
Obligations
The yield on 10-year Treasury notes rose two basis points to 4.17%.
Germany’s 10-year yield was little changed at 2.42%.
The UK 10-year yield rose three basis points to 4.08%.
Raw materials
This story was produced with assistance from Bloomberg Automation.
–With assistance from Richard Henderson.
Bloomberg Businessweek’s Most Read Articles
©2024 Bloomberg LP
News Source : finance.yahoo.com
Gn bussni
