US futures fluctuate, stocks slip on coronavirus worry

Bloomberg

US equity futures fluctuated and stocks in Europe and Asia declined on Monday as investors struggled to gauge the economic hit from the spreading coronavirus while preparing for more corporate earnings. Treasuries and European bonds turned higher.
Contracts on the three main American equity indexes swung between modest gains and losses. Travel and oil stocks helped pull the Stoxx Europe 600 lower. The euro steadied after five losing sessions, even as the region was buffeted by political headlines. German Chancellor Angela Merkel’s succession plan collapsed, and polls put Sinn Fein in place for a possible role in Ireland’s government, depressing the country’s banking stocks.
Asia’s main equity gauges fell everywhere apart from Shanghai, as traders monitored the restart of Chinese factories and the possible chaos that may ensue as several hundreds of thousands of people begin returning to work at companies like Apple Inc manufacturer Foxconn. The dollar dipped versus a basket of its major peers following three days of gains. Bonds rose, and the yield on Greece’s 10-year debt dropped to a record low.
With cases of the coronavirus outside of China continuing to increase and various trade groups pulling back from international meetings, investors are scrambling to figure out whether the rate of growth for the illness is stabilising. Monetary authorities across emerging markets have stepped in to help shore up the financial system.
“This coronavirus seems to be going on for longer, is infecting more people and the hit to growth will be longer,” Diana Mousina, an economist at AMP Capital Investors, told Bloomberg TV in Sydney. “You won’t be able to recoup all of the negative impacts in the first quarter.”
Earnings are due this week from major names like Alibaba Group Holding Ltd, Credit Suisse Group AG and Nestle SA.
Crude-oil futures fell in New York. Emerging-market currencies steadied against the dollar.
Bitcoin traded just below $10,000, having risen above that mark over the weekend for the first time since October.
Earnings season continues with reports including: MGM Resorts and Cisco Systems on Monday; Softbank on Wednesday; Thursday will bring Alibaba, Nissan, Credit Suisse, Airbus, Nestle and AIG.
Federal Reserve Chairman Jerome Powell delivers his semiannual testimony in Congress on Tuesday and on Wednesday; ECB President Christine Lagarde speaks at the European Parliament on Tuesday.
Thursday brings a gauge of underlying US inflation, the core consumer price index. It’s expected to increase to 0.2% in January, a faster pace than in
December.
China and the US on Friday lower tariffs on billions of dollars of respective imports, as part of the trade deal signed last month.
Futures on the S&P 500 Index was unchanged in New York. The Stoxx Europe 600 Index decreased 0.2%. The MSCI Asia Pacific Index declined 0.5%. The MSCI Emerging Market Index dipped 0.3%.
The Bloomberg Dollar Spot Index fell 0.1%. The British pound gained 0.3%. The euro climbed 0.1% to $1.0951. The Japanese yen was little changed at 109.76 per dollar. The offshore yuan strengthened 0.4% to 6.9822 per dollar.
The yield on 10-year Treasuries decreased one basis point to 1.57%. Germany’s 10-year yield dipped two basis points to -0.40%. Britain’s 10-year yield fell less than one basis point to 0.566%. Japan’s 10-year yield declined two basis points to -0.055%.
West Texas Intermediate crude decreased 0.6% to $50.03 a barrel. Gold strengthened 0.2% to $1,574.04 an ounce.