Stocks fell with U.S. and European futures on Tuesday over concerns over the timeline for President Joe Biden’s fiscal relief plan and amid warnings about potential assets. The dollar extended an advance.
A benchmark of stocks in Asia and the Pacific slipped the most in about two months. Hong Kong underperformed and dragged down by a slump in Tencent Holdings Ltd. after the internet giant’s market value to the level of $ 1 trillion for the first time Monday. In China, shares fell after the central bank withdrew cash from the banking system and an official warned about asset bubbles.
S&P 500 futures have slipped following comments from Senate Leader Chuck Schumer that aid package unlikely before mid-March. Nasdaq 100 contracts showed lower than the earnings of some of the largest technology companies. Treasury prices rose overnight and crude oil traded below $ 53 a barrel.
World equities have retreated from a record as investors seek new catalysts to raise them higher or at least justify current valuations. This could stem from a series of earnings reports available this week. Meanwhile, the possibility that a U.S. tax relief package could be delayed is undermining, a major reason why treasury yields climbed earlier this year.
“If financial markets needed further confirmation that the U.S. fiscal stimulus was the only game in town, the herd buying it received overnight,” Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte., Said in a note. writing. The upset of Senate Republicans over the size of the planned package “was enough to divert stocks from their intraday highs,” lowering bond yields and fueling demand for the dollar.
President Joe Biden has said he is open to negotiations on his $ 1.9 billion Covid-19 aid proposal, and hopes to bring Republicans behind it, although he has not followed a democratic path. Schumer said earlier Monday he plans to secure the next round of relief by mid-March, just when unemployment benefits from the last package run out.
On the pandemic front, vaccine coverage will not reach a point that will stop the transmission of the virus within the foreseeable future, the World Health Organization. The U.S. chief of infectious diseases, Anthony Fauci, said he was concerned about delays in second doses.
These are some important events ahead in the coming week:
- Microsoft Corp., Apple Inc., Tesla Inc., Facebook Inc. and Samsung Electronics Co. counts among the companies that deliver results.
- Data on U.S. house prices and consumer confidence come Tuesday.
- The Federal Public Market Committee’s monetary policy decision and briefing by Chairman Jerome Powell is scheduled for Wednesday.
- Fourth-quarter GDP, initial unemployment claims and new home sales are among U.S. data on Thursday.
- U.S. personal income, spending and pending home sales come Friday.
These are the main movements in markets:
Stocks
- S&P 500 futures fell 0.6% in London at 07:12. The S&P 500 index rose 0.4%.
- Japan’s Topix index fell 0.8%.
- The Kospi index in South Korea pushed 2.1%.
- Hong Kong’s Hang Seng index tumbled 2.4%.
- The Shanghai Composite Index fell 1.5%.
- Euro Stoxx 50 futures fell 0.2%.
Currencies
- The Bloomberg Dollar Spot Index added 0.2%.
- The euro fell 0.1% to $ 1.2127.
- The British pound fell 0.3% to $ 1.3641.
- The Japanese yen changed little at 103.74 per dollar.
- The foreign yuan stands at 6.4866 per dollar.
Effects
- The yield on 10-year treasury is kept at 1.03%.
Commodities
- West Texas Intermediate crude fell 0.5% to $ 52.50 a barrel.
- Gold was $ 1,855 per ounce.
– With help from Vivien Lou Chen, Katherine Greifeld and Joanna Ossinger