European stocks decline with US futures; pound advances

Bloomberg

The end-of-month rebound in global equities faded as investors assessed a scaled-back fiscal stimulus proposal in the US against the rising toll of the coronavirus pandemic.
European share declines were led by banks and other cyclical stocks. The pound added to gains amid speculation that successful Brexit trade talks could help shield Britain from a messy rupture with the European Union. Earlier in Asia, NTT Docomo Inc. jumped after its parent offered $40 billion for the remaining shares in its wireless carrier unit.
S&P 500 futures slipped after the US gauge climbed the most in more than two weeks. Stocks sensitive to the pandemic fall in premarket trading including Norwegian Cruise Line Holdings. With the September selloff, the index is set for its worst month relative to global peers since 2018.
As the global death toll from the pandemic exceeds one million, investors are looking for direction. They’re reviewing a $2.2 trillion proposal by Democrats and are awaiting the first presidential debate, where Democratic presidential candidate Joe Biden may face tough questions on how he would approach China if he wins in November.
“We definitely need another round of stimulus here, not only for confidence for the American public and workers, but also for the markets,” Michelle Connell, owner and president of Portia Capital Management, said on Bloomberg Television. “Going into this election, that would definitely help.”
The Stoxx Europe 600 Index declined 0.3% as of 9:36 am London time and futures on the S&P 500 Index decreased 0.1%.
While Nasdaq 100 Index futures dipped 0.3%, the MSCI Asia Pacific Index falls 0.1%.
The Bloomberg Dollar Spot Index was little changed and sterling strengthened 0.2% to 90.73 pence per euro.
While the Japanese yen weakened 0.2% to 105.73 per dollar, South Africa’s rand weakened 0.7% to 17.1836 per dollar.
The yield on 10-year Treasuries fell less than one basis point to 0.65% and Germany’s 10-year yield dipped one basis point to -0.54%.
While Britain’s 10-year yield decreased less than one basis point to 0.198%, Italy’s 10-year yield declined two basis points to 0.863%.
West Texas Intermediate crude declined 0.9% to $40.23 a barrel and gold was little changed at $1,880.95 an ounce.
While silver weakened 0.3% to $23.61 per ounce, iron ore increased 1.9% to $116.60 per metric ton.