(Bloomberg) — European stocks fell and U.S. equity futures edged lower as investors pored over the latest reports on the spread of the coronavirus beyond China and a batch of lackluster corporate earnings. The dollar jumped.
The Stoxx Europe 600 Index slipped as South Korea reported its first fatality from the disease after cases there more than doubled. Earnings from some of the continent’s biggest companies also underwhelmed, from French insurer AXA SA to Telefonica SA of Spain. Futures on the S&P 500 Index turned lower after Japan reported two deaths from the virus. In Asia, gains in Shanghai, Tokyo and Sydney were countered by declines in rest of the major markets.
The yen extended its slump, weakening toward 112 per dollar, with market participants ascribing a host of reasons, ranging from disappointing economic news to early positioning before the fiscal year-end next month. Treasuries climbed.
While the number of new coronavirus cases in China continues to come down, those beyond the mainland are sparking alarm. Earnings misses from some of Europe’s biggest names are adding to the gloom, with companies continuing to warn on the pathogen’s impact. On Thursday, the world’s largest container shipping company A.P. Moller-Maersk A/S said 2020 will be marred by “considerable uncertainties” due to the outbreak’s impact on global trade. Air France-KLM guided earnings lower.
Here are some key events coming up:
Earnings season rolls on, with results from Deere & Co. set for Friday.Group of 20 finance ministers and central bank chiefs are due to meet Feb. 22-23 in Riyadh, Saudi Arabia, and are expected to discuss efforts to support growth amid the coronavirus threat.
These are the main moves in markets:
The Stoxx Europe 600 Index fell 0.4% as of 11:03 a.m. London time.Futures on the S&P 500 Index declined 0.2%.Nasdaq 100 Index futures dipped 0.2%.The MSCI Asia Pacific Index sank 0.6%.The MSCI World Index of developed countries decreased 0.2%.
The Bloomberg Dollar Spot Index jumped 0.4%.The euro decreased 0.1% to $1.0793.The Japanese yen weakened 0.6% to 112.09 per dollar.The South Korean Won weakened 0.8% to 1,198.37 per dollar.
The yield on 10-year Treasuries sank two basis points to 1.55%.Germany’s 10-year yield dipped one basis point to -0.43%.Britain’s 10-year yield decreased less than one basis point to 0.595%.Japan’s 10-year yield gained one basis point to -0.039%.
West Texas Intermediate crude declined 0.1% to $53.23 a barrel.Gold was little changed at $1,611.39 an ounce.LME aluminum declined 0.4% to $1,712.50 per metric ton.Iron ore rose 2.4% to $89.20 per metric ton.
–With assistance from Cormac Mullen and Adam Haigh.
To contact the reporter on this story: Todd White in Madrid at [email protected]
To contact the editors responsible for this story: Christopher Anstey at [email protected], Yakob Peterseil
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