Oct 13, 2020
U.S. Futures Retreat; Dollar, Treasuries Gain: Markets Wrap
(Bloomberg) - U.S. futures slipped, while Asian stocks were mixed on Tuesday as investors weighed a possible delay of the progress toward a Covid immunization against an overnight surge in innovation shares. The dollar and Treasuries progressed.
S&P 500 shares withdrew after a report that Johnson & Johnson's Covid-19 antibody study has been stopped because of a participant’s unexplained illness. Stocks stayed higher in Australia, changed in Japan, and dunked in South Korea and China. Earlier, the S&P 500 shut higher for the fourth day, and innovation pioneers including Amazon.com Inc., Apple Inc., and Twitter Inc., pushed the NASDAQ 100 to its biggest development since April.
The Australian dollar slid amid reports that China has suspended acquisition of Australian coal. Hong Kong rejected its trading meeting as a hurricane approached.
"The obstacles right now originate from the vulnerability around the U.S. political race and the vulnerability about the circumstance and efficacy of an antibody," said Chris Iggo, Chief Investment Officer, AXA IM Core Investments.
In the U.S. the profit season is getting in progress, while Amazon is gearing for its Prime Day bonanza and Apple for its occasion where it is expected to disclose 5G as one of its most noteworthy additions to the current year's iPhones.
U.S. President Donald Trump tested negative on succeeding days for Covid-19, his physician said on Monday afternoon, a week after Trump had been released from the hospital for treatment of the disease.
Meanwhile, the hearings for the Supreme Court selection of Judge Amy Coney Barrett started on Monday in the Senate Judiciary Committee, as Republicans attempt to solidify a traditional majority in the court before the Nov. 3 political decision.
JPMorgan, Citigroup, and BlackRock report income on Tuesday; results from Wells Fargo, Bank of America, and Goldman Sachs are expected on Wednesday; Morgan Stanley's profits are planned for Thursday. U.K. Prime Minister Boris Johnson set a deadline on Thursday to thrash out the outline of a European Union trade deal.
The President of European Central Bank, Christine Lagarde, begins the virtual yearly gatherings of the International Monetary Fund and the World Bank Group today and until Oct. 18.
These are some of the primary moves in business sectors:
S&P 500 futures fell 0.4% as of 1:22 p.m. in Tokyo. The S&P 500 climbed 1.6%. Topix index rose 0.1%. Australia's S&P/ASX 200 Index added 1.3%. South Korea's Kospi index dropped 0.3%. Shanghai Composite Index slid 0.3%. Euro Stoxx 50 prospects fell by 0.2%.
The yen traded at 105.42 per dollar, down 0.1%. The offshore yuan plunged 0.1% to 6.7517 per dollar, following a 0.8% slide. The euro was at $1.1794, down 0.2%. The Aussie dipped 0.5% to 71.75 U.S. cents. The Bloomberg Dollar Spot Index rose 0.2%.
Ten-year Treasury yields fell around one basis point 0.76%. Australia's 10-year security yield was at 0.84%.
West Texas Intermediate crude was minimally changed at $39.45 a barrel. It fell 2.7% in New York earlier. Gold plunged 0.6% to $1,910.92 an ounce.
Economic Calendar Highlights
U.K. Average Earnings Index +Bonus: 7:00am
The Average Earnings Index measures change in the price businesses and the government pay for labor, including bonuses. The Average Earnings figure gives us a good indication of personal income growth during the given month.
A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP.
U.K. Claimant Count Change: 7:00am
Claimant Count Change measures the change in the number of unemployed people in the U.K. during the reported month. A rising trend indicates weakness in the labor market, which has a trickle-down effect on consumer spending and economic growth.
A higher than expected reading should be taken as negative/bearish for the GBP, while lower than expected reading should be taken as positive/bullish for the GBP.
Germany ZEW Economic Sentiment: 10:00am
The German Zentrum für Europäische Wirtschaftsforschung (ZEW) Economic Sentiment Index gauges the six-month economic outlook. A level above zero indicates optimism; below indicates pessimism. The reading is compiled from a survey of about 350 German institutional investors and analysts.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR.
U.S. Core Consumer Price Index (CPI) MoM: 1:30pm
The Core Consumer Price Index (CPI) measures the changes in the price of goods and services, excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.