Global stocks trade mixed as dollar, US Treasury yields rise

Bloomberg

Global stocks were mixed as M&A deals gave a boost to Europe, while worries about new virus variants and hurdles to the Biden administration’s stimulus proposal fanned a risk-off mood in the US and Asia.
S&P 500 equity futures dropped, while Treasury yields climbed as President Joe Biden said he’s open to negotiating his $1.9 trillion Covid-19 relief proposal. The top Senate Democrat said lawmakers said an aid package was unlikely before mid-March.
In contrast, European stock markets were almost uniformly green. Naturgy Energy Group SA soared 16% as asset manager IFM Global Infrastructure offered to buy a stake in the Spanish utility. Sweden’s EQT AB, one of
Europe’s biggest private equity firms, jumped as much as 10% after agreeing to take over
Exeter Property Group in a $1.9 billion deal.
Asia took the brunt of the selling on Tuesday as China’s central bank withdrew cash from the banking system and an official cautioned about asset bubbles. The MSCI Asia Pacific Index sinks most in two months.
Adding to the backdrop of market worries was more negative news about the pandemic. Vaccine coverage won’t reach a point that would stop transmission of the virus in the foreseeable future, the World Health Organisation said.
German Chancellor Angela Merkel told party colleagues the potential threat from faster-spreading variants means the country is “sitting on a powder keg,” according to Bild newspaper.
“There are some negative news on lockdowns, new virus variants, and questions about vaccine efficacy,” said Mark Nash, head of fixed-income alternatives at Jupiter Asset Management. “That’s not a good combination for markets expecting a perfect world.”
Futures on the S&P 500 Index dipped 0.2% as of 8:52 am London and the Stoxx Europe 600 Index gained 0.5%.
While the MSCI Asia Pacific Index declined 1.4%, the MSCI Emerging Market Index declined 1.7%.
The Bloomberg Dollar Spot Index advanced 0.1% to 1,125.98 and the euro was little changed at $1.2138.
While the British pound decreased 0.3% to $1.3639, the Japanese yen was little changed at 103.77 per dollar.
The yield on 10-year Treasuries climbed one basis point to 1.04% and the yield on two-year Treasuries gained one basis point to 0.12%.
While Germany’s 10-year yield increased one basis point to -0.54%, Britain’s 10-year yield gained one basis point to 0.271%. West Texas Intermediate crude fell 0.3% to $52.75 a barrel and gold weakened 0.1% to $1,854.94 an ounce.