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Bloomberg
US equities extended losses and European shares climbed as investors reassessed the strong rally that started the week. Treasuries resumed their charge higher, while the pound weakened after Britain’s parliament once again failed to reach a consensus on Brexit.
The Dow was dragged down by Walgreens Boots Alliance Inc after lower pharmacy reimbrusements hurt earnings at the drugstore chain. Shares of consumer staples and energy companies were the biggest sector decliners in the S&P 500, a day after the index reach the highest level of the year. Carmakers led the Stoxx Europe 600 Index towards the highest close this year. Asia’s benchmark finished broadly unchanged as Japanese shares slipped and stocks in Shanghai and Seoul advanced.
“The world is cautiously optimistic — hoping for the best, but preparing for the worst,†said Jay Pestrichelli, founder and chief executive of ZEGA Financial, which manages around $400 million.
Positive sentiment in the first quarter has spilled over into the second, and global equities began this week building on the best start to a year since 2010 as traders bet on looser monetary policy.
Still, a myriad of risks remain, including Europe’s slowing growth, Britain’s difficult split with the European Union and the lingering trade war. US-China talks are set to resume when Vice Premier Liu He leads a delegation to Washington later this week.
“We’re still in a state of flux and I think investors are just looking for any positive sign to sustain the rally or at least put a floor underneath where we are in the marketplace,†said Tom Stringfellow, president at Frost Investment Advisors, which has $3.68 billion in assets under management.
Elsewhere, oil traded near a four-month high in New York as a further retreat in OPEC’s production signaled that global markets are tightening.
OPEC crude production fell for a fourth month in March as Saudi Arabia forged ahead with cutbacks and as power blackouts in Venezuela further squeezed supplies, a Bloomberg survey showed.
Bitcoin jumped as much as 23 percent to its highest level since late November, according to Bloomberg composite pricing.
Chinese Vice Premier Liu He leads a delegation of trade negotiators to Washington on Wednesday. The monthly US jobs report on Friday is projected to show nonfarm payrolls up 175,000 in March, similar to the 186,000 average over the prior three months, after recent readings whipsawed analysts.
The S&P 500 Index dropped 0.2 percent in New York, while the Nasdaq Composite Index eased 0.1 percent and the Dow Jones Industrial Average dropped 0.4 percent. The Stoxx Europe 600 rose 0.4 percent. The MSCI Emerging Market Index increased 0.3 percent. The MSCI Asia Pacific Index rose less than 0.1 percent.
The Bloomberg Dollar Spot Index gained 0.2 percent. The euro eased less than 0.1 percent to $1.1204, while the yen weakened less than 0.1 percent to 111.36 per dollar. The British pound weakened 0.5 percent to $1.3037. The MSCI Emerging Markets Currency Index was little changed.
The yield on 10-year Treasuries declined two basis points to 2.48 percent.
Germany’s 10-year yield fell two basis points to negative 0.05 percent. Britain’s 10-year yield fell five basis points to 1 percent.
West Texas Intermediate rose 0.9 percent to $62.15 a barrel. Gold advanced 0.2 percent to $1,289 an ounce. The Bloomberg Commodity Index fell 0.1 percent.