Stocks slide amid technology sell-off; Brexit spurs pound

Bloomberg

Stocks declined globally on Monday amid a technology sell-off and as investors braced for a week packed with risk events, from central bank decisions to a G-20 gathering. Government bonds also fell, while the pound jumped on a Brexit breakthrough.
US stock slumped as tech companies were roiled by weekend reports of a Facebook Inc. data breach and Apple Inc. efforts to develop its own screens. That sapped Asian equities, while tech also led a retreat for the Stoxx Europe 600 Index. The gauge’s drop threatens to trigger a trading pattern known as a “death cross,” a bearish sign for many technical analysts.
Sterling rallied as the UK and EU reached a deal on the transition agreement for the period immediately after Brexit. The yen fluctuated before slipping amid a drop in support for Japanese PM Shinzo Abe’s cabinet.
In a busy week, the biggest focus for global markets will be the first US interest rate decision under new Federal Reserve Chairman Jerome Powell. It comes after he hinted to investors that he’s open to lifting the policy rate four times this year, rather than the three currently reflected in dot-plot forecasts. Some Wall Street banks such as Goldman Sachs Group Inc. expect the median projection to rise to four on Wednesday, while others say there will be no change following a round of mediocre data and policy makers’ stated intentions to move gradually.
Trade tensions also remain in the spotlight as US Treasury official David Malpass said he misspoke hours after claiming America was pulling out of decade-old formal economic talks with Beijing. Elsewhere, the ruble weakened for a sixth day, the longest losing streak since October, as Russian President Vladimir Putin won a landslide victory in a tightly controlled election. West Texas oil edged lower.
The Fed decision and Powell’s news conference come on Wednesday. The Bank of England is expected to keep interest rates and its asset-purchase program unchanged on Thursday. Attention will be on language and the odds for a May hike. Saudi Crown Prince Mohammed bin Salman is expected to meet with President Donald Trump at the White House this week.
The S&P 500 Index fell 0.6 percent in New York, while the Dow Jones Industrial Average dropped 0.6 percent and the Nasdaq Composite Index dipped 1.1 percent. The Stoxx Europe 600 Index fell 0.5 percent and the MSCI Asia Pacific Index decreased 0.8 percent on the largest dip in two weeks. The UK’s FTSE 100 Index sank 1.2 percent on the biggest tumble in more than two weeks. The MSCI Emerging Market Index sank 0.8 percent.
The Bloomberg Dollar Spot Index fell 0.1 percent. The euro climbed 0.2 percent to $1.2313. The British pound climbed 0.8 percent to $1.406 on the biggest increase in almost eight weeks. The Japanese yen fell 0.2 percent to 106.24 per dollar. South Africa’s rand sank 0.9 percent to 12.0884 per dollar, the weakest in more than five weeks. The MSCI Emerging Markets Currency Index sank 0.3 percent on the largest decrease in almost three weeks.
The yield on 10-year Treasuries advanced three basis points to 2.87 percent. Germany’s 10-year yield increased three basis points to 0.60 percent and the largest climb in almost two weeks. Britain’s 10-year yield climbed seven basis points to 1.429 percent on the biggest surge in almost 11 weeks. West Texas Intermediate crude fell 0.4 percent to $62.08 a barrel. Gold was little changed at $1,313.72 an ounce.