European stocks collapse on travel rules; Dollar Steady: Market wrap – swissinfo.ch

This content was published on August 14, 2020 – 12:46 PM

(Bloomberg) – US futures have fluctuated after the rebound in US retail sales slowed sharply in July, while European stocks collapsed as new quarantine rules took hold in the UK

Treasuries were flat and the dollar weakened after the value of retail purchases rose 1.2% from the previous month after gaining 8.4% revised upward in June. The Stoxx Europe 600 index sank after Britain added France, the Netherlands and Malta to its list of countries from which arriving people are to be quarantined for 14 days.

Gold edged down after two days of gains, as oil headed for a second weekly advance.

Traders continue to bank on further fiscal stimulus to help the nascent recovery even as negotiations over a new coronavirus relief plan remain at a standstill. Retail sales figures released on Friday exceeded expectations, illustrating the slow recovery in consumption.

“The economic data of recent times has presented investors with a glimmer of hope but the outlook remains decidedly bleak, especially with a reduction in tax support for American consumers,” wrote Antoine Bouvet, senior rate strategist at ING Bank, in a statement. note published before the detail report.

On the virus front, Joe Biden said US governors should demand masks for the next three months, while New Zealand has recorded 12 new confirmed local cases of the coronavirus. Germany has added the most new cases since May, while the head of the French Health Agency, Jérôme Salomon, said the situation in his country is getting worse.

Here are some key upcoming events:

  • US-China trade negotiations are expected in the coming days.

Here are the main movements in the markets:

Stocks

  • Futures contracts on the S&P 500 Index were little changed at 8:38 a.m. New York time.
  • The Stoxx Europe 600 index fell 1.1%.
  • The MSCI Asia Pacific Index was little changed.
  • The MSCI Emerging Markets Index fell 0.3%.

Currencies

  • The Bloomberg Dollar Spot Index fell 0.2%.
  • The euro rose 0.1% to $ 1.1826.
  • The British pound climbed 0.5% to $ 1.3126.
  • The onshore yuan weakened 0.1% to 6.95 per dollar.
  • The Japanese yen strengthened 0.3% to 106.65 per dollar.

Obligations

  • The yield on 10-year treasury bills fell one basis point to 0.71%.
  • The yield on two-year Treasuries fell one basis point to 0.16%.
  • Germany’s 10-year yield fell by less than a basis point to -0.41%.
  • Japan’s 10-year yield jumped two basis points to 0.051%.
  • The UK 10-year yield rose one basis point to 0.257%.

Basic products

  • West Texas Intermediate crude fell 0.1% to $ 42.18 per barrel.
  • Brent dipped 0.2% to $ 44.88 a barrel.
  • Gold weakened 0.4% to $ 1,946.75 an ounce.

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