Stocks, Futures Fall; Euro Slips Ahead of ECB: Markets Wrap

(Bloomberg) — Stocks fell with U.S. equity futures on Thursday as investors parsed mixed economic data from China and waited for guidance from the European Central Bank over its bond buying program.

The Stoxx 600 Index tracked Asian shares lower after Chinese retail sales in June came in softer than expected. Nasdaq 100 futures slumped, with Twitter Inc. falling 6% in the pre-market after accounts of some of America’s most prominent political and business leaders were hacked. Tesla Inc. dropped in early trading.

The euro fluctuated and regional bonds were mixed ahead of the ECB’s policy decision, where it’s expected to keep its emergency bond-buying program unchanged but will likely face questions over whether the current level of support is sufficient.

The slump in tech shares and the reminder of the long road ahead to a full global recovery is quashing optimism seen earlier in the week spurred by progress in developing a coronavirus vaccine. While China is experiencing a modest domestic recovery, it remains highly vulnerable to setbacks as shutdowns continue to hamper activity across the globe.

“The problem is, this is still uneven,” Helen Qiao, chief greater China economist at Bank of America Corp., said on Bloomberg TV, referring to the latest data. “It is hard to see how China can remain on a firm footing at a time when the rest of the world is still coping with a very deep recession.”

Meanwhile, President Donald Trump has indicated to aides that he doesn’t want to further escalate tensions with Beijing, and has ruled out additional sanctions on top officials for now, according to people familiar with the matter. His administration is considering a sweeping ban on travel to the U.S. by Chinese Communist Party members, though Trump may in the end reject the plan, according to a report.

Elsewhere, oil retreated from a four-month high after the OPEC+ alliance confirmed it would start tapering output cuts from next month.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index declined 0.8% as of 10:28 a.m. London time.The Stoxx Europe 600 Index dipped 0.8%.Germany’s DAX Index decreased 0.7%.The MSCI Asia Pacific Index decreased 1.5%.

Currencies

The Bloomberg Dollar Spot Index advanced 0.1%.The euro dipped 0.1% to $1.1397.The Japanese yen weakened 0.1% to 107.02 per dollar.The British pound fell 0.3% to $1.255.

Bonds

The yield on 10-year Treasuries dipped one basis point to 0.62%.Germany’s 10-year yield climbed less than one basis point to -0.44%.Britain’s 10-year yield declined one basis point to 0.153%.

Commodities

West Texas Intermediate crude fell 1.3% to $40.67 a barrel.Gold weakened 0.2% to $1,806.20 an ounce.

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