Bloomberg Markets Wrap: Stocks, Futures Dip as Earnings Roll In; Dollar Up

As the pandemic continues to rage, governments are having to double down on the $11 trillion dollars worth of stimulus and unprecedented central bank support unleashed since the crisis began. While the Federal Reserve vowed to use all its tools to support the recovery on Wednesday, Chair Jerome Powell sounded a dour tone about the long road to recovery ahead.

Germany’s economy plunged into a record slump in the second quarter. A report later Thursday is forecast to show U.S. gross domestic product plummeted an annualized 34.8% in the second quarter, the most in records dating back to the 1940s.

Elsewhere, oil hovered just below a barrel after data showed the biggest decline in U.S. crude inventories this year.

Apple, Amazon.com, Alphabet report earnings Thursday; results from Chevron Corp. and Caterpillar Inc. are due Friday.U.S. second-quarter GDP is due on Thursday.China PMI data comes Friday.

Futures on the S&P 500 Index fell 1% as of 10:09 a.m. London time.The Stoxx Europe 600 Index declined 1.3%.Germany’s DAX Index sank 2.5%.The MSCI Asia Pacific Index decreased 0.2%.

Currencies

The Bloomberg Dollar Spot Index jumped 0.4%.The euro sank 0.5% to

.1737.The Japanese yen weakened 0.2% to 105.10 per dollar.The British pound decreased 0.1% to .298.

Bonds

The yield on 10-year Treasuries dipped two basis points to 0.55%.Germany’s 10-year yield declined three basis points to -0.53%.Britain’s 10-year yield dipped two basis points to 0.094%.

Commodities

West Texas Intermediate crude fell 1.5% to .65 a barrel.Gold weakened 1.1% to

,949.86 an ounce.

Stocks, Futures Dip as Earnings Roll In; Dollar Up: Markets Wrap, Bloomberg, Jul 30