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Bloomberg
US stocks fell along with the dollar as political tensions added to a growing list of investor concerns. Gold rose and Treasuries edged higher.
The S&P 500 Index deepened its decline following its biggest weekly retreat since March as President Donald Trump threatened to impose another round of tariffs on China. European and Asian shares dropped after a weekend of warnings on global economic fragility from finance chiefs meeting at an annual IMF gathering.
The dollar touched a two-week low against peers, while the 10-year Treasury yield traded near 3.15 percent after US retail sales disappointed in September. Gold headed toward its fourth advance in five days.
Some of the worries that helped fuel the worst sell-off in global stocks since February were on full display in headlines over the weekend. IMF Managing Director Christine Lagarde warned of more market volatility. As President Donald Trump threatened more tariffs on China, the Asian nation’s ambassador to the US said his nation didn’t want a trade war but will respond.
“The breakdown in Brexit talks, demise of the CSU in Bavarian elections, the impasse over Italy’s budget and the worried tone coming from the IMF/World Bank meeting in Bali all combine to give financial markets an uncomfortable feel this morning,†Kit Juckes, global foreign-exchange strategist at Societe Generale SA, wrote in a note.
The pound erased a drop of as much as 0.5 percent. In Frankfurt, stock trading resumed after the opening was delayed by a technical glitch.
Italian bonds pared earlier gains as the nation prepared to meet Monday’s midnight deadline for euro-area governments to turn in fiscal budgets.
APEC finance ministers meet in Port Moresby, Papua New Guinea China’s new yuan loans may have risen to 1.36 trillion yuan ($196 billion) in September from August’s 1.28 trillion yuan as officials sought to buoy economic growth. On Tuesday, consensus is for CPI to pick up to 2.5 percent growth and PPI to slow to 3.6 percent. Third-quarter GDP for China comes on Friday, with headline growth forecast to slow to 6.6 percent year on year from 6.7 percent, in addition to last month’s retail sales and factory output. Minutes from the Federal Reserve’s latest policy meeting are due on Wednesday, with investors focused on projections for further interest rate rises. Goldman Sachs, Morgan Stanley and Netflix are among companies reporting this week. Euro-area governments, including Italy, must turn in fiscal budget proposals to the European Commission by midnight Monday.
The S&P 500 Index fell 0.2 percent in New York. The Stoxx Europe 600 Index dropped 0.1 percent. The MSCI All-Country World Index dipped 0.1 percent. The MSCI Emerging Market Index declined 0.6 percent.
The Bloomberg Dollar Spot Index fell 0.3 percent to the lowest in more than two weeks. The euro climbed 0.3 percent to $1.1590. The Japanese yen gained 0.3 percent to 111.86 per dollar, the strongest in four weeks. The MSCI Emerging Markets Currency Index advanced 0.2 percent to 1,596.24 per euro, the highest in more than a week.
The yield on 10-year Treasuries decreased one basis point to 3.15 percent. Germany’s 10-year yield fell less than one basis point to 0.50 percent, the lowest in more than a week. Britain’s 10-year yield dipped three basis points to 1.606 percent, the lowest in more than a week.
The Bloomberg Commodity Index gained 0.6 percent, the largest gain in almost two weeks. West Texas Intermediate crude increased 0.6 percent to $71.76 a barrel. LME copper fell less than 0.05 percent to $6,299.50 per metric ton.