With virus cases surging around the world, there’s speculation that economic growth could lose moment just as central banks pare back their support measures.
Bloomberg: U.S. stock-index futures fell and the dollar extended a rally as faltering growth and China’s regulatory curbs compounded risks before the Federal Reserve’s Jackson Hole symposium next week.
Equity markets around the world were broadly in the red for another day. Hong Kong’s benchmark stock index entered a bear market and Europe’s Stoxx 600 Index was on track for the biggest weekly loss since February.
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Investors sought the safety of haven assets, with the dollar rising for a fifth day, its longest winning streak in two months. Treasury yields fell and gold climbed.
“The delta variant of Covid is significantly more serious than anyone is really even pricing into the market,” Hilary Kramer, chief investment officer at Kramer Capital Research, said on Bloomberg Television. “We know that tapering is coming. We know that the market is getting tired.”
With virus cases surging around the world, there’s speculation that economic growth could lose moment just as central banks pare back their support measures. U.K. retail sales fell unexpectedly last month and major employers are delaying plans to bring workers back into the office.
Analysts also cautioned that options expiring in the U.S. on Friday may fuel market volatility.
Asian markets have been hammered this week by China’s tougher enforcement actions. The Hang Seng Index fell 1.8% on Friday, taking losses from its recent Feb. 17 peak to more than 20%. That extended its weekly loss to 5.8%, the worst showing since March 2020.
Internet bellwether Alibaba’s shares hit a record low in Hong Kong this week and Tencent Holdings Ltd. warned the industry to prepare for more regulations including substantial changes to how companies use data for advertising.
In Europe, losses were milder. Marks & Spencer Group Plc shares surged after raising its profit forecast on strong sales of both food and clothing.
Wm Morrison Supermarkets Plc rallied almost 5% in London trading. Clayton Dubilier & Rice LLC raised its offer for the company to 7 billion pounds ($9.5 billion) as the bidding war with Fortress Group to win control of Britain’s fourth-largest grocer intensifies.
In the U.S. pre-market, Moderna Inc. fell after The Washington Post reported that health officials were investigating reports the company’s vaccine may be linked to higher risk of a heart condition than previously thought.
Some of the main moves in markets:
Futures on the S&P 500 fell 0.5% as of 6:07 a.m. New York time
Futures on the Nasdaq 100 fell 0.3%
Futures on the Dow Jones Industrial Average fell 0.5%
The Stoxx Europe 600 fell 0.4%
The MSCI World index fell 0.3%
The Bloomberg Dollar Spot Index rose 0.2%
The euro was little changed at $1.1674
The British pound fell 0.2% to $1.3612
The Japanese yen rose 0.1% to 109.62 per dollar
The yield on 10-year Treasuries declined one basis point to 1.23%
Germany’s 10-year yield was little changed at -0.50%
Britain’s 10-year yield declined one basis point to 0.53%
West Texas Intermediate crude fell 0.6% to $63.32 a barrel
Gold futures were little changed