Stocks Waver Amid Fresh China Crackdown Concerns

Stocks wavered on Tuesday amid fresh concerns about China’s clampdown on private industries and a mixed bag of earnings from some of Europe’s biggest companies. Technology stocks were the biggest losers as the Stoxx Europe 600 index fluctuated at the open. Prosus NV plunged as much as 5.7% after Chinese Internet giant Tencent Holdings Ltd. slumped on fears the authorities will set their sights on online entertainment next. A Chinese price probe into automobile chipmakers also rattled the sector, with Infineon Technologies AG’s profit miss adding to worries.

Meanwhile, the energy shares climbed after BP Plc followed its Big Oil peers by increasing dividends and share buybacks as higher crude prices boosted profit. S&P 500 and Nasdaq 100 contracts posted modest gains, while Asian stocks were mixed.

The spread of the delta Covid-19 variant and signs of robust but softer U.S. manufacturing growth contributed to an overnight S&P 500 dip. The 10-year U.S. Treasury yield remained below 1.20% after falling as low as 1.15%. The real yield on 10-year Treasuries — which strips out the expected impact of inflation — was close to a record low. The dollar slipped against major peers.

Oil held a decline as the virus and indications of a slower Chinese economic rebound hurt the outlook for consumption. New Zealand’s dollar jumped on policy tightening bets. Australia’s currency advanced after its central bank kept a plan to taper bond purchases despite a protracted lockdown in Sydney.

The months-long advance in Treasuries for some commentators points to worries that a weaker period lies ahead for the economic reopening from the health crisis. Traders are awaiting key U.S. jobs data this week to gauge the recovery and monitoring the impact of price pressures sparked by pandemic-related disruption and bottlenecks.

Bank of England is expected to keep its benchmark interest rate and its bond-buying target unchanged ThursdayReserve Bank of India monetary policy decision, briefing FridayThe U.S. jobs report is expected to show another robust month of hiring Friday

Stocks

The Stoxx Europe 600 rose 0.1% as of 8:24 a.m. London timeFutures on the S&P 500 climbed 0.3%Futures on the Nasdaq 100 advanced 0.2%Futures on the Dow Jones Industrial Average added 0.3%The MSCI Asia Pacific Index was little changedThe MSCI Emerging Markets Index was little changed

Currencies

The Bloomberg Dollar Spot Index fell 0.1%The euro was little changed at $1.1879The Japanese yen rose 0.2% to 109.10 per dollarThe offshore yuan was little changed at 6.4653 per dollarThe British pound rose 0.2% to $1.3906

Bonds

The yield on 10-year Treasuries was little changed at 1.17%Germany’s 10-year yield was little changed at -0.48%Britain’s 10-year yield was little changed at 0.53%

Commodities

Brent crude fell 0.4% to $72.63 a barrelSpot gold fell 0.1% to $1,811.63 an ounce

Stocks Waver Amid Fresh China Crackdown Concerns: Markets Wrap, Bloomberg, Aug 3