Stocks struggled for direction in most markets and Treasuries held steady in the run-up to Wednesday’s decision from the Federal Reserve’s policy meeting.
The Stoxx Europe 600 Index opened modestly lower as earnings rolled in, with Barclays Plc shares slipping after U.K. bank’s provisions for bad loan losses exceeded market estimates. U.S. index futures swung from losses to gains, while the dollar fell against a basket of its major peers. Gold was little changed at about $1,960 an ounce.
Shares slid in Japan, where Fitch Ratings lowered its outlook on the country’s debt and earnings at Canon Inc. disappointed. Stocks saw modest gains in Hong Kong and South Korea, and outperformed in China on low volumes.
Investors will keep an eye on earnings due this week from some of the world’s largest companies for clues on whether a resurgence of Covid-19 will derail a recovery in the global economy. A drop in U.S. consumer confidence added to evidence that the pace of the rebound is cooling as the virus interrupts reopenings in several states.
Meanwhile, the Fed extended most of its emergency lending programs by three months, through the remainder of 2020. The U.S. central bank is set to announce its rate decision Wednesday, and the market anticipates a dovish statement.
“There’s enough stimulus and support in the market from a monetary policy perspective, but also from fiscal, and that keeps a nice floor under the market,” said Amanda Agati, chief investment strategist for PNC Financial Services Group. “But we also think it’s going to be very difficult to make a lot of forward progress in this environment.”
Elsewhere, West Texas oil steadied near $41 a barrel amid expectations for higher U.S. crude stockpiles. Bitcoin held above $11,000 in its ninth day of gains.
Here are some key events coming up:
- The Federal Open Market Committee’s announcement is due on Wednesday.
- Earnings include Apple, Amazon.com, Alphabet, L’Oreal, Credit Suisse and Samsung; Chevron and Caterpillar are set for Friday.
- U.S. second-quarter GDP is expected on Thursday.
- China PMI data comes Friday.
These are some of the main moves in markets:
Stocks
- The Stoxx Europe 600 Index declined 0.1% as of 10:20 a.m. London time.
- Futures on the S&P 500 Index rose 0.1%.
- The MSCI Asia Pacific Index decreased 0.3%.
Currencies
- The Bloomberg Dollar Spot Index dipped 0.2% to 1,177.73, the lowest in 22 months.
- The euro jumped 0.3%.
- The British pound was little changed at $1.2936.
- The Japanese yen strengthened 0.1% to 104.97 per dollar.
- New Zealand’s dollar was little changed at $0.666.
Bonds
- The yield on 10-year Treasuries was unchanged at 0.58%.
- Britain’s 10-year yield decreased one basis point to 0.096%.
- France’s 10-year yield fell one basis point to -0.202%.
- Australia’s 10-year yield decreased four basis points to 0.882%.
Commodities
- West Texas Intermediate crude climbed 0.5% to $41.26 a barrel.
- Silver weakened 0.1% to $24.37 per ounce.
- Gold was little changed at $1,958.81 an ounce.
Source: Bloomberg