US stocks remain down, dollar, Treasuries stabilise

Bloomberg

US stocks remained down after recovering from steeper early losses, while European and Asian equities slumped. Treasuries and the dollar stabilised. Oil fell and copper rose.
The S&P 500 Index and Dow Jones Industrial Average each fell more than 1 percent at the open on Monday, before a rally in utility and consumer shares pulled them back up somewhat. The Stoxx Europe 600 Index retreated for a sixth day, its longest losing streak since November 2017, following similar moves across Asia. Yields on core government bonds in Europe fell, while those of 10-year Treasuries edged higher. The pound slumped after data, and the euro saw its biggest decline in almost three weeks.
Equity investors are looking for confirmation that recent declines represent the healthy correction many had expected after the stellar start to the year. The downward move was sparked by US wage data that pointed to quickening inflation, which would lead to higher rates and, in turn, rising borrowing costs for companies.
“You’re going to have these blowoffs that are going to be a little more common than they were last year,” Tom Plumb, president of Madison, Wisconsin-based SVA Plumb Wealth Management, said. The firm manages $2.7 billion.
“And I still think they’ll be looked at as opportunities to step in.”
Elsewhere, oil extended declines after US explorers raised the number of rigs drilling for crude to the most since August 2017. Bitcoin slid below $7,500.
Monetary policy decisions are due in Australia, Russia, India, Brazil, Poland, Romania, the UK, New Zealand, Serbia, Peru and the Philippines. Earnings season continues with reports from Bristol-Myers Squibb, Ryanair, Toyota Motor Corp., BNP Paribas, BP, General Motors, Walt Disney, SoftBank, Sanofi, Philip Morris, Total, Tesla, Rio Tinto, L’Oreal and Twitter. Dallas Fed President Robert Kaplan and New York Fed President William Dudley are among policy officials due to speak in Frankfurt and New York.
The S&P 500 fell 0.4 percent as of 11:36 am New York time. The Stoxx Europe 600 Index declined 1.6 percent, hitting the lowest in almost
12 weeks with its sixth consecutive decline. Germany’s DAX Index fell 0.8 percent. The UK’s FTSE 100 Index sank 1.5 percent to a two-month low.
The Bloomberg Dollar Spot Index gained 0.2 percent. The euro decreased 0.4 percent to $1.2416. The British pound declined 0.8 percent to $1.4006, the weakest in almost two weeks. The Japanese yen gained 0.1 percent to 110.04 per dollar.
The yield on 10-year Treasuries gained one basis point to 2.85 percent, the highest in four years. Germany’s 10-year yield declined three basis points to 0.74 percent, the largest decrease in almost six weeks. Britain’s 10-year yield declined two basis points to 1.558 percent. West Texas Intermediate crude dipped
0.6 percent to $65.04 a barrel.