Stocks Erase Gain as Gold Rally Cools Below $2,000

European stocks erased gains and U.S. equity futures retreated as the busiest week of earnings season got underway. Gold slid after a record-breaking rally.

LVMH and Moncler SpA both dropped after the high-end apparel makers earnings missed analyst expectations.PSA Group jumped as much as 5.6% after the Peugeot maker surpassed estimates for revenue and profit. Silver retreated, while Treasury yields were little changed.

Investors are betting setbacks in the fight against the coronavirus will lead Federal Reserve Chairman Jerome Powell to signal Wednesday that rates will stay near zero for longer. Health officials are tackling rising cases in countries ranging from Japan and China to Germany, underscoring the difficulty of curbing the pandemic.

The Federal Open Market Committee holds its policy meeting on Tuesday, with an announcement due on Wednesday.

Stocks

Futures on the S&P 500 Index declined 0.5% as of 11:08 a.m. London time.The Stoxx Europe 600 Index decreased 0.3%.The MSCI Asia Pacific Index increased 0.4%.

Currencies

The Bloomberg Dollar Spot Index fell 0.2%.The euro sank 0.2% to $1.1731.The British pound dipped 0.1% to $1.2874.The Japanese yen strengthened 0.2% to 105.18 per dollar.The offshore yuan weakened 0.1% to 7.0056 per dollar.

Bonds

The yield on 10-year Treasuries sank one basis point to 0.60%.The yield on two-year Treasuries dipped less than one basis point to 0.15%.Germany’s 10-year yield fell one basis point to -0.50%.Britain’s 10-year yield gained one basis point to 0.114%.Japan’s 10-year yield climbed less than one basis point to 0.023%.

Commodities

West Texas Intermediate crude declined 0.9% to $41.27 a barrel.Brent crude decreased 0.4% to $43.30 a barrel.Gold weakened 0.6% to $1,931.72 an ounce.

Stocks Erase Gain as Gold Rally Cools Below $2,000: Markets Wrap, Bloomberg, Jul 28