U.S. Futures Slide on Virus Worry; Dollar Steadies: Markets Wrap

(Bloomberg) — U.S. equity futures slipped, while European stocks advanced as investors studied whether a resurgence in coronavirus infections will sap appetite for riskier assets.

EasyJet Plc slumped after selling more shares. Deutsche Lufthansa AG rallied as its biggest stockholder backed a government rescue package. West Texas crude oil fell below $38 a barrel. Gold continued its push toward $1,800 an ounce. The dollar fluctuated versus a basket of its peers.

The pullback from equities in some markets and flight to havens reflects investor worries that lockdowns may be reimposed and economies re-opened more slowly. New infections set daily records in Texas, Florida and California. Health leaders called on the U.K. to prepare for a possible second wave, while Australia recorded its largest spike in cases since April.

“The market really got the shivers over the prospect of a big increase in Covid and maybe starting to see places that were opening up have to close up,” Margie Patel, portfolio manager at Wells Fargo Asset Management, said on Bloomberg TV. “We’ve had such a great run from the end of March it’s only inevitable that we should get at least a little step back.”

Elsewhere, stocks in Asia fell the most in almost two weeks. China and Hong Kong were shut for holidays.

Here are some key events coming up:

U.S. jobless claims, durable goods and GDP data are due Thursday.A rebalance of Russell indexes is due on Friday.

These are the main moves in markets:

Stocks

The Stoxx Europe 600 Index climbed 0.3% as of 9:50 a.m. London time.Futures on the S&P 500 Index dipped 0.2%.Nasdaq 100 Index futures fell 0.1%.The MSCI Emerging Market Index fell 0.6%.

Currencies

The Bloomberg Dollar Spot Index climbed 0.1%.The euro dipped 0.1% to $1.124.The British pound jumped 0.2% to $1.2441.The Japanese yen weakened 0.1% to 107.19 per dollar.South Africa’s rand weakened 0.1% to 17.391 per dollar.

Bonds

The yield on 10-year Treasuries decreased one basis point to 0.67%.Germany’s 10-year yield dipped one basis point to -0.45%.France’s 10-year yield fell one basis point to -0.112%.Britain’s 10-year yield declined two basis points to 0.171%.

Commodities

Brent crude decreased 0.5% to $40.11 a barrel.Gold strengthened 0.2% to $1,765.30 an ounce.LME aluminum dipped 0.5% to $1,568 per metric ton.

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