14 Oct by Vitaliy Dadalyan

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U.S. Stock Futures Dip as Bank Earnings Begin: Markets Wrap

U.S. Stock Futures Dip as Bank Earnings Begin: Markets Wrap(Bloomberg) — U.S. equity futures edged lower as some of the biggest banks began reporting earnings. The pound steadied after the U.K. signaled it wouldn’t immediately abandon Brexit trade talks.Bank of America Corp. fell in the premarket after its trading revenue missed estimates. Wells Fargo & Co. and Goldman Sachs Group Inc. are due to release results later in the day. Investors are looking to earnings season to provide a spark for equity markets amid the dwindling prospects for more U.S. economic stimulus before next month’s election.Trading elsewhere in markets was mixed, and there were signs that the recent rally in emerging market stocks is losing steam. The MSCI Asia Pacific Index fell for the first time in eight days and China Evergrande Group plunged 17% after the developer raised less than anticipated in a share sale.Treasuries turned higher while the greenback held steady. Oil driller Concho Resources Inc. jumped after a report that the company is in talks to be acquired by ConocoPhillips.Investors are still closely watching for any signs of progress on more U.S. economic stimulus. The S&P 500 fell on Tuesday amid concerns that lawmakers won’t be able to break a stalemate before the Nov. 3 election.Trump’s Grip on Senate Republicans Slipping With Stimulus Ploy“We continue to see the ping-pong back and forth between the White House, Senate Republicans and Democrat-controlled House, and what’s at stake is both the size of the stimulus but also what the money goes toward,” David Chao, a strategist at Invesco Ltd., said on Bloomberg TV. “I still think there will be a stimulus package between now and the end of the year, which is what the market is partially discounting.”In Europe, an index of travel shares dropped for a third day as authorities tighten curbs to regain a grip on the pandemic. Across the continent, infections are rising, France reported a surge in patients needing intensive care and Prime Minister Boris Johnson is facing pressure to order a national lockdown.In emerging markets, Zambia told creditors including Eurobond holders that the government won’t be able to meet its obligations if they don’t agree to its proposed interest payment holiday. The bonds fell to four-month lows.Here are some key events coming up:Results from Wells Fargo, Bank of America and Goldman Sachs are due Wednesday; Morgan Stanley’s earnings are scheduled for Thursday.U.K. Prime Minister Boris Johnson set a deadline of Thursday to thrash out the outline of a European Union trade deal.European Central Bank President Christine Lagarde leads off the virtual annual meetings of the International Monetary Fund and the World Bank Group. Through Oct. 18.These are some of the main moves in markets:StocksFutures on the S&P 500 Index declined 0.2% as of 6:59 a.m. New York time.Nasdaq 100 Index futures declined 0.1%.The Stoxx Europe 600 Index decreased 0.1%.The MSCI Asia Pacific Index dipped 0.1%.CurrenciesThe Bloomberg Dollar Spot Index advanced 0.1%.The British pound increased 0.1% to $1.295.The Japanese yen strengthened 0.1% to 105.42 per dollar.South Africa’s rand weakened 0.4% to 16.5454 per dollar.BondsThe yield on 10-year Treasuries decreased two basis points to 0.71%.Germany’s 10-year yield dipped three basis points to -0.59%.Britain’s 10-year yield declined three basis points to 0.209%.Italy’s 10-year yield fell one basis point to 0.644%.CommoditiesWest Texas Intermediate crude decreased 0.7% to $39.92 a barrel.Gold strengthened 0.4% to $1,898.79 an ounce.Natural gas sank 6.3% to $2.68 per mmbtu.Iron ore dipped 1.4% to $115.30 per metric ton.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.


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