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Bloomberg
European stocks pulled back from a two-week high and US futures retreated after a rally when on Monday President Donald Trump left the hospital.
Tech stocks led losses in the Europe Stoxx 600 Index. Hardware maker Logitech International SA slumped as Apple Inc. plans to launch its own audio products and stop selling rival headphones. Treasuries rise and the dollar was steady.
Moves across markets were relatively muted. The MSCI AC Asia Pacific Index climbed for a second day and oil edged higher in New York after the biggest daily gain since May.
After the S&P 500’s biggest advance in almost four weeks yesterday, investors seem to be taking a break to digest new information. Trump’s return from three days of hospital treatment for Covid-19 left unanswered questions about his condition, and doubts about his willingness to abide by constraints needed to keep a virus outbreak at the White House from worsening. Investors have also been waiting for any signs of progress in a US economic stimulus package.
“As the fourth quarter gets underway, investors face an uncertain outlook,†Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note to clients. “Political uncertainty has moved center stage in the final run up to the US election, with President Trump’s positive test for Covid further clouding the picture.â€
Futures on the S&P 500 Index decreased 0.3% as of 9:40 am London time and the Stoxx Europe 600 Index falls 0.4%. While the MSCI Asia Pacific Index advanced 0.7%, the MSCI Emerging Market Index gained 0.7%.
The Bloomberg Dollar Spot Index increased 0.1% and the euro dipped 0.1% to $1.1774.
While the British pound was little changed at $1.2983, the onshore yuan strengthened 0.4% to 6.791 per dollar. The Japanese yen strengthened 0.2% to 105.56 per dollar.
The yield on 10-year Treasuries decreased two basis points to 0.76% and the yield on two-year Treasuries dipped one basis point to 0.14%.
While Germany’s 10-year yield declined one basis point to -0.52%, Japan’s 10-year yield climbed one basis point to 0.039% and Britain’s 10-year yield dipped one basis point
to 0.281%.
West Texas Intermediate crude gained 0.4% to $39.38 a barrel and Brent crude gained 0.5% to $41.48 a barrel. Gold weakened 0.3% to $1,907.89
an ounce.