Stocks Drop After Fed Flags Risk; Treasuries Climb
August 20, 2020 @ 14:33 +03:00
Stocks fell across much of the world after the Federal Reserve signaled continued concern over the pandemic weighing on the world’s biggest economy. U.S. equity futures pared declines and Treasuries advanced before key data on U.S. unemployment.
The dollar held most of Wednesday’s surge versus its biggest peers, while gold edged higher.
U.S. Congressional leaders hinted they were looking for a path toward reviving stalled talks on the next round of pandemic relief — even as both sides remain far from a deal. Any accord is still likely to wait until September despite the fact that the U.S. economy is limping along with many businesses still struggling and millions of Americans out of work.
Oil declined from a five-month high in New York with the Fed and OPEC+ sounding caution on the demand recovery.
U.S. jobless claims for the week ended Aug. 15 are due Thursday. Euro-area PMIs will be released on Friday.
Futures on the S&P 500 Index decreased 0.3% as of 7:21 a.m. New York time.Nasdaq 100 Index futures fell 0.1%.The Stoxx Europe 600 Index dipped 0.8%.The MSCI Asia Pacific Index dipped 1.5%.
The Bloomberg Dollar Spot Index was little changed.Sterling strengthened 0.3% to 0.9016 per euro.The Japanese yen strengthened 0.2% to 105.92 per dollar.The South Korean Won weakened 0.5% to 1,186.94 per dollar.
The yield on 10-year Treasuries fell three basis points to 0.65%.The yield on two-year Treasuries fell one basis point to 0.13%.Britain’s 10-year yield decreased one basis point to 0.222%.Germany’s 10-year yield dipped three basis points to -0.50%.
West Texas Intermediate crude declined 1% to $42.50 a barrel.Gold strengthened 0.2% to $1,934.04 an ounce.Silver strengthened 1% to $26.97 per ounce.LME zinc decreased 0.6% to $2,490.50 per metric ton.
Stocks Drop After Fed Flags Risk; Treasuries Climb, Bloomberg, Aug 20