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Stocks Fall on Italian Budget Worries; Oil Steady: Markets Wrap: Bloomberg

  • Euro weakens as BTP yields surge; bunds lead core bonds higher
  • Treasuries steady as dollar edges up; Asian stocks gain

Stocks in Europe dropped at the end of a volatile month as political concerns returned to center stage. Italian bonds plunged after the country’s populist leaders gained the upper hand in a battle over spending.

The Stoxx Europe 600 Index retreated led by Italian shares. U.S. equity-index futures also fell ahead of economic data including consumer spending, income and inflation. The yen’s slide to the weakest level this year helped stoke Japanese stocks as Asian equities advanced from Sydney to Shanghai. Treasuries and the dollar were little changed. Italian yields climbed the most since June after the government set a wider budget deficit than some investors had anticipated. The euro slipped, and core European bonds gained. Oil remained on course for the longest run of weekly gains in four months as energy giants to Wall Street banks predicted the return of$100 crude on fears of an impending supply crunch.

Political risks have returned to the top of investors’ agenda at the end of a quarter dominated by central banks and emerging-market crises. In Italy, populists won their battle to fund costly campaign promises, while infighting over Brexit is embroiling the U.K.’s Conservative Party ahead of a conference next week. In the U.S., the confirmation of President Donald Trump’s Supreme Court pick, Brett Kavanaugh, has turned toxic amid allegations of sexual assault. Data on spending and prices may return the focus to the American economy later Friday.

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These are the main moves in markets:

Stocks

  • The Stoxx Europe 600 Index fell 0.3 percent to 385.29 as of 8:08 a.m. London time.
  • Futures on the S&P 500 Index dipped 0.1 percent.
  • The MSCI All-Country World Index decreased 0.1 percent to the lowest in more than a week.
  • The U.K.’s FTSE 100 Index declined 0.2 percent.
  • Germany’s DAX Index rose 0.4 percent.
  • The MSCI Emerging Market Index sank 0.3 percent.

Currencies

  • The Bloomberg Dollar Spot Index increased 0.1 percent.
  • The euro fell 0.2 percent to $1.1616, the weakest in more than two weeks.
  • The British pound declined 0.1 percent to the weakest in more than two weeks.
  • The Japanese yen decreased less than 0.05 percent to 113.40 per dollar, the weakest in more than nine months.

Bonds

  • The yield on 10-year Treasuries dipped one basis point to 3.04 percent, the lowest in more than a week.
  • Germany’s 10-year yield dipped four basis points to 0.49 percent.
  • Britain’s 10-year yield declined three basis points to 1.565 percent.
  • Japan’s 10-year yield gained one basis point to 0.125 percent.

Commodities

  • West Texas Intermediate crude gained 0.2 percent to $72.28 a barrel, the highest in almost four years.
  • Gold dipped 0.1 percent to $1,181.52 an ounce, the weakest in six weeks.
  • Copper decreased 0.1 percent to $2.78 a pound, the lowest in more than a week.

By and 

September 28, 2018, 5:15 PM GMT+10

Source: Bloomberg

 

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