(Bloomberg) — S&P 500 futures dropped alongside most stock markets after an acrimonious American presidential debate highlighted the risk of a contested vote in November. The dollar fluctuated.
The contracts slipped in the hours after the chaotic sparring between Donald Trump and Democratic hopeful Joe Biden during which the president suggested vote-by-mail could be rife with fraud. In Europe, declines in industrial-goods and tech shares outweighed gains in utilities.
“Trump refused to soften his stance on the contested-elections scenario, which we think would have been a huge positive development for markets,” said Win Thin, global head of currency strategy at Brown Brothers Harriman & Co. in New York.
Micron Technology Inc. slid in the premarket after the largest U.S. chipmaker said it halted shipments to China’s Huawei Technologies Co. Another down arrow in the premarket was Walt Disney Co., which said 28,000 workers will be let go in its slumping U.S. resort business. That marks one of the deepest workforce reductions of the Covid-19 era.
Investment firms were also recalibrating positions on the final day of this quarter, with traders saying flows were positive for the dollar.
Global investors are keeping an eye on news about coronavirus vaccines and on talks in Washington for new stimulus that are set to reach a critical juncture this week. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke Tuesday morning for 50 minutes and are set to speak again Wednesday.
Traders are preparing for euro-area inflation data on Friday. Sub-zero headline consumer price index readings came for France and Germany and put a damper on the euro Wednesday as they ratcheted up the probability of additional easing by the European Central Bank. ECB officials are speaking Wednesday.
Elsewhere, crude oil traded around $39 a barrel in New York, heading for the first monthly loss since April, as the world’s biggest trading houses signaled a meaningful recovery in demand is some way off.
Here are some key events coming up:
A large line up of ECB officials, including President Christine Lagarde, speak Wednesday at the ECB and its Watchers Conference.The EIA crude oil inventory report comes out Wednesday.The September U.S. employment report on Friday will be the last before the November election.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index fell 0.7% as of 8:08 a.m. New York time.Nasdaq 100 Index futures dropped 0.8%.The Stoxx Europe 600 Index slipped 0.3%.The MSCI Asia Pacific Index decreased 0.6%.
Currencies
The Bloomberg Dollar Spot Index increased 0.2%.The British pound decreased 0.3% to $1.282.Switzerland’s franc weakened 0.1% to 1.0805 per euro.The offshore yuan strengthened 0.1% to 6.8111 per dollar.
Bonds
The yield on 10-year Treasuries dipped one basis point to 0.64%.Germany’s 10-year yield fell less than one basis point to -0.55%.Britain’s 10-year yield climbed less than one basis point to 0.187%.New Zealand’s 10-year yield climbed five basis points to 0.519%.
Commodities
West Texas Intermediate crude fell 0.3% to $39.19 a barrel.Gold weakened 0.8% to $1,883.06 an ounce.Natural gas slid 3.2% to $2.48 per mmbtu.Iron ore surged 3.6% to $121.05 per metric ton.
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