US stocks erase early gains as crude retreats, dollar slips

Bloomberg

US equities plunged at the start of a busy week as declining oil prices pulled down energy stocks.
Crude slipped from a two-year high after US drillers expanded operations while OPEC and Russia prepare to discuss longer supply curbs. The S&P 500 Index erased early gains as companies including Hess and Marathon Oil dropped. Financial and technology shares also declined. Reports of North Korea preparing a missile launch may also be moving markets, sending Treasuries and the yen higher.
Meanwhile, investors are gearing up for a big week, with US President Donald Trump scheduled to address Senate Republicans on Tuesday ahead of a potential vote on a tax overhaul. Federal Reserve Chair Janet Yellen testifies before the congressional Joint Economic Committee in Washington, and the confirmation hearing for her nominated successor, Jerome Powell, begins. Adding to the mix are data on US GDP, prices and jobs.
The Stoxx Europe 600 Index fell as defensive sectors such as real estate and utilities outperformed cyclical shares, with Deutsche Bank AG recommending a switch. The euro fell and German bonds gained as the country moved closer to forming a new government. The dollar declined to a two-month low.
Nickel led a slump in industrial metals, with copper declining for the first time in seven sessions. Precious metals had a better day, with gold and platinum rising.
The US Senate as soon as this week could debate and vote on tax-cut legislation. Trump will meet with Democratic and Republican congressional leaders on Tuesday to discuss a federal spending plan to prevent a partial shutdown and keep the government open after current funding expires on December 8. Bank of England will publish annual stress tests on Tuesday alongside its Financial Stability
Review looking at the health of
UK banks.
In China, the official and Caixin manufacturing PMIs are expected to show mostly steady momentum.
The S&P 500 Index rose 0.1 percent as of 11:02 am New York time. The Stoxx Europe 600 Index decreased 0.1 percent. The UK’s FTSE 100 Index fell 0.1 percent.
Germany’s DAX Index declined 0.1 percent. The MSCI Emerging Market Index dipped 0.8 percent.
The Bloomberg Dollar Spot Index declined 0.1 percent to the lowest in almost two months. The euro decreased 0.1 percent to $1.192. The British pound advanced less than 0.05 percent to $1.3337. The Japanese yen climbed 0.4 percent to 111.05 per dollar, the strongest in 10 weeks.
The yield on 10-year Treasuries declined less than one basis point to 2.34 percent. Germany’s 10-year yield fell two basis points to 0.35 percent, the lowest in three weeks. Britain’s 10-year yield gained one basis point to 1.262 percent. Japan’s Nikkei 225 Stock Average sank 0.2 percent. The MSCI Asia Pacific Index sank 0.3 percent. Japan’s 10-year yield climbed one basis point to 0.043 percent, the highest in more than a week.