Stocks Show Resilience Amid Tech Slump; Euro Gains: Markets Wrap

Stocks in Europe fell as markets reopened after the long weekend, but declines were muted compared to Monday’s U.S. selloff, while in Asia shares erased a drop. The dollar came under pressure against major peers, while Treasuries edged lower.

The Stoxx Europe 600 Index slipped for the first day in four, while equity benchmarks were down less than 0.5 percent in Tokyo and Seoul after the S&P 500 Index tumbled more than 2 percent. In a further sign the selloff may ease, U.S. equity futures advanced. The Australian and New Zealand dollars had the biggest gains among G10 currencies against the greenback.

After the worst three months for global stocks in more than two years, the second quarter has started on the back foot as trade tensions fester and technology shares get slammed. The risk-off mood comes as investors prepare for earnings season. They still anticipate a strong showing, but will be watchful for any more signs of a slowdown in the synchronized global expansion.

“What we are really seeing across the economies and markets are opposing forces playing out: in the economy you are seeing Fed versus inflation, in markets you are seeing momentum versus fundamental supports,” JPMorgan Asset Management Global Market Strategist Hannah Anderson told Bloomberg TV. “Investors need to be aware of these opposing forces along with a lot of the headline risk we are seeing come through when it comes to trade and regulation and how that’s going to impact their portfolios.”

Elsewhere, the Reserve Bank of Australia left interest rates unchanged at its monthly meeting. Crude steadied after its biggest loss in almost two months.

Here are some key events coming up this week:

The New York Fed debuts the Secured Overnight Financing Rate on Tuesday. The Reserve Bank of India decides on policy Thursday. U.S. employment data are due Friday; the jobless rate probably fell in March after holding at 4.1 percent for five straight months.These are the main moves in markets:

Stocks

The Stoxx Europe 600 Index fell 0.5 percent as of 8:09 a.m. London time with the first retreat in more than a week. Futures on the S&P 500 Index rose 0.5 percent. The MSCI All-Country World Index dipped 0.1 percent to the lowest in 19 weeks. The U.K.’s FTSE 100 Index fell 0.6 percent, reaching the lowest in a week on the first retreat in more than a week. Germany’s DAX Index fell 0.7 percent, the largest fall in more than a week. The MSCI Emerging Market Index gained 0.1 percent. The MSCI Asia Pacific Index climbed less than 0.05 percent.

Currencies

The Bloomberg Dollar Spot Index dipped 0.2 percent to the lowest in a week. The euro gained 0.2 percent to $1.2328. The British pound gained 0.2 percent to $1.4072. The Japanese yen decreased 0.1 percent to 105.96 per dollar.

Bonds

The yield on 10-year Treasuries gained one basis point to 2.74 percent, the biggest advance in more than a week. Germany’s 10-year yield climbed one basis point to 0.50 percent, the highest in a week on the largest surge in almost two weeks. Britain’s 10-year yield decreased one basis point to 1.35 percent, reaching the lowest in more than 10 weeks on its seventh straight decline.

Commodities

West Texas Intermediate crude gained 0.3 percent to $63.22 a barrel. Copper increased 0.2 percent to $3.06 a pound, reaching the highest in almost two weeks on its fifth consecutive advance. Gold decreased 0.1 percent to $1,340.47 an ounce.

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