(Bloomberg) – Stocks in Europe plummet with US stock futures after China emerged to pour cold water on a partial trade deal announced by Donald Trump, saying he wanted to iron out the details before signing it. . European bonds have won.
The Stoxx Europe 600 index extended its decline, led by banks and miners, after Bloomberg announced that China was seeking further talks before sealing the "first phase" agreement announced on Friday by the US president. The futures of the S&P 500 have fallen, signaling US stocks could run out of steam after rising to 1.8% on record Friday. Stocks rose earlier from Sydney to Hong Kong, helping to maintain the rally in emerging markets after the positive end of the last round of trade talks.
The yuan deleted most of its earlier offshore profits. Treasury futures have soared since the closely watched yield increase turned positive in the previous session on monetary bonds, which was closed for US and Japanese holidays.
The limited agreement outlined by China and the United States on Sunday maintained the prospects for a comprehensive trade deal and provided an initial boost to risky assets. But investor skepticism turned out to be well-founded after Bloomberg announced that Beijing still wants to remove the fine print, with some sticking points left. Worse than expected trade data in September in China underscored growing pressure on Trump and President Jinping to reach an agreement to prevent a wider slowdown in the global economy.
"Let's not get carried away," says Raul Lering, head of international trade research at ING Bank NV. "There is a very difficult journey ahead for negotiators from the US and China to conclude a deal that really has substance."
The focus will soon turn to the revenue season, which starts with major US banks, including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley.
Elsewhere, the pound has withdrawn after rocketry in the last two sessions, while EU negotiators warned that Brexit plans by UK Prime Minister Boris Johnson are not yet good enough to form the basis of an agreement. Turkey's trading market and currency plummeted after the US and Europe increased threats of sanctions over invading Syria. And crude oil from West Texas has plummeted after rising the most in nearly a month on Friday.
Here are some key events that appear this week:
International Monetary Fund and World Banking Meetings to discuss economic development and finance. Louis Fed President James Bullard spoke at the Bloomberg Conference on Monetary and Financial Policy in London. Rixbank manager Stefan Ingves also spoke there. Atlanta Fed President Rafael Bostic speaks in Atlanta. San Francisco Federation President Mary Dali delivers a speech in Los Angeles. On Wednesday, it decides on monetary policy in South Korea.U.S. Retail sales forecasts are rising for the seventh consecutive year. Sales in the "control group" are expected to increase. Consumer spending carries the brunt of US economic growth, so data will be closely monitored for signs of slowdown. China releases GDP for the third quarter, September, industrial production and retail sales on Friday.
Here are the major market movements:
The futures of the S&P 500 index fell 0.5% at 6:32 PM New York time. The Stoxx Europe 600 dropped 1.1%. The Swiss SMI index fell 1.1%. Germany's German DAX index fell 0.8%. The MSCI Emerging Markets Index rose 0.6%.
The Bloomberg Dollar Spot Index rose 0.1%. The British pound fell 0.8% to $ 1.22563. The euro was slightly changed to $ 1.1041. The Australian dollar fell 0.6% to 0.675 per dollar.
The 10-year UK yield declines by eight basis points to 0.623%. Germany's 10-year yield declines by three basis points to -0.47%. Spain's 10-year yield declines by three basis points to 0.205%.
West Texas Intermediate to Rough Futures fell 2.4% to $ 53.40 a barrel. Gold advanced 0.5% to $ 1,495.92 an ounce. Ore futures fell 2.4% to $ 86.30 per metric ton in Singapore. Carbon decreased by 2.7% to EUR 23.79 per tonne.
– With assistance from Sophie Caronello, Mark Tannenbaum and Adam Haigh.
To contact the reporter on this story: Todd White in Madrid at firstname.lastname@example.org
To contact the editors responsible for this story: Christopher Anstey at canstey @ bloomberg. net, Robert Brand
For more articles like this, please visit us at bloomberg.com
© 2019 Bloomberg LP