So long gains — Trump just tweeted ‘get ready’ for missiles and stock futures plunged
Stocks faced a fresh wave of pressure today as investors grappled with a slew of catalysts, chief among them the prospect of American military action in Syria. The dollar drifted and Treasuries climbed as traders also prepared for the latest U.S. inflation reading, and weighed the receding threat of a trade war.
A risk-off mood gradually took hold in the wake of solid equity gains a day earlier, and as President Donald Trump tweeted that Russia should “get ready” for missiles coming at Syria. U.S. stock futures and European shares both fell, while shares were mixed in Asia. Indexes in China and Hong Kong posted the biggest gains in that region as People’s Bank of China Governor Yi Gang offered more details on pledges to open the world’s second-biggest economy, an announcement seen as further easing protectionist stress with the U.S.
But trade concerns were in the background for now as geopolitical stress around Syria appeared to grow. Trump has intensified preparations for a U.S. response to a suspected chemical weapons attack in the country, setting up further strain with Russia, which disagrees the attack took place.
Meanwhile, price-growth data will offer the next clue on the path for interest rates in the world’s biggest economy. Markets are on watch for inflationary pressures that could accelerate tightening, a move that could have ramifications across all assets as the synchronized growth story behind the global bull rally shows signs of maturing.
Elsewhere, WTI crude rose, while aluminum headed for the highest close since January after top exchanges said they’ll stop accepting metal from United Co. Rusal in the wake of the Russia sanctions.
These are the main moves in markets:
Stocks
The Stoxx Europe 600 Index dipped 0.6 per cent as of 7:13 a.m. New York time, the largest decrease in more than two weeks. Futures on the S&P 500 Index dipped 0.9 per cent. The MSCI All-Country World Index dipped 0.1 per cent. The U.K.’s FTSE 100 Index declined 0.2 per cent. Germany’s DAX Index decreased 0.8 per cent, the largest dip in almost three weeks. The MSCI Emerging Market Index fell 0.3 per cent. The MSCI Asia Pacific Index was unchanged at the highest in more than two weeks.
Currencies
The Bloomberg Dollar Spot Index dipped 0.1 per cent to the lowest in more than two weeks. The euro gained 0.2 per cent to $1.2382, the strongest in more than two weeks. The British pound increased 0.1 per cent to $1.4185, the strongest in more than two weeks. The Japanese yen rose 0.3 per cent to 106.84 per dollar.
Bonds
The yield on 10-year Treasuries dipped three basis points to 2.78 per cent. Germany’s 10-year yield decreased two basis points to 0.50 per cent, the lowest in three months. Britain’s 10-year yield fell three basis points to 1.373 per cent, the lowest in a week on the biggest drop in two weeks.
Commodities
West Texas Intermediate crude rose 1.1 per cent to $66.26 a barrel, the highest in almost three years. Copper decreased 0.1 per cent to $3.13 a pound. Gold rose 0.8 per cent to $1,349.66 an ounce, the highest in more than two weeks on the largest advance in more than a week.