Monday, March 20, 2017 18:04 WIB
|Oil Weighs on Europe Stocks as Dollar Pares Drop: Markets Wrap
by Adam Haigh and Eddie Van Der Walt
March 20, 2017, 5:31 AM GMT+7 March 20, 2017, 5:21 PM GMT+7
Weaker oil prices helped drag European shares lower while a gauge of the U.S. dollar flirted with its longest losing streak since Donald Trump won the election. The yield on 10-year U.S. Treasuries steadied after Friday’s decline to the lowest in two weeks.
The Stoxx Europe 600 Index retreated, with oil and gas companies leading declines as crude slipped for the ninth day in 11. While the greenback fell against most of its major peers, the Bloomberg Dollar Spot Index pared its fourth daily loss to trade little changed. Gold touched the highest level in two weeks.
The U.S. currency slumped last week after the Federal Reserve delivered a more dovish message than expected, even as it raised interest rates. Investor focus on Monday turned to the outcome of a G20 meeting, where finance ministers locked heads before issuing a statement that dropped a reference to resist all forms of protectionism. That’s renewing concerns about the U.S. president’s desire to pursue new trading terms.
What’s coming up this week:
- U.K. inflation may have edged above the 2 percent target in February and retail sales probably rose, data may show Tuesday.
- March PMI for France is due Friday, along with final fourth quarter GDP figures.
- There’s a torrent of Fed speakers this week, headlined by Janet Yellen on March 23.
- Central bank policy decisions in New Zealand, Philippines and Sri Lanka.
- Japan Prime Minister Shinzo Abe to host trade talks with the European Union on Tuesday.
Here are the main market moves:
- Bloomberg’s dollar index was little changed as of 10:16 a.m. in London.
- The euro climbed 0.1 percent to $1.0753, while the British pound also gained 0.1 percent.
- The Stoxx Europe 600 Index fell 0.2 percent with oil and gas companies down 1.2 percent.
- Futures on the S&P 500 Index were down 0.2 percent. The underlying gauge rose 0.2 percent last week.
- The yield on 10-year Treasuries was little changed at 2.5 percent after falling four basis points on Friday.
- German bonds traded changed, with volumes very poor. Ten-year bund futures volumes were running at around 60 percent of the five-day average.
- French bonds were also little changed ahead of France’s first televised election debate this evening.
- Short-dated Spanish and Italian bonds outperformed, ahead of the ECB’s long-term refinancing operation later this week.
- West Texas Intermediate crude slid 1.4 percent to $48.09 a barrel. It has dropped 11 percent this month, heading for the steepest one-month slide since July.
- Gold rose 0.3 percent to $1,232.94 an ounce, climbing for a fourth day.
- Base metals fell on the London Metal Exchange, with copper for delivery in three months down 0.6 percent and aluminum retreating 0.3 percent.