(Bloomberg) — Stocks fell with American equity futures as investors await key U.S. jobs data at the end of a week in which fears of a growth break-out sparked volatility across markets. Treasuries rose and the dollar advanced.
Europe’s Stoxx 600 index opened more than 1% lower, with every industry sector in the red. Equity futures in the U.S. slipped, with contracts on the tech-heavy Nasdaq 100 signaling more declines after a topsy-turvy week that erased this year’s gains. Ten-year Treasuries recovered, with their yields down two basis points to 1.54%.
Bond yields have climbed in recent weeks on mounting expectations of stronger economic growth and price pressure, with erratic moves unsettling stocks as well. The February U.S. employment report on Friday will give a much-needed update on the speed and direction of the country’s labor-market recovery.
“It makes logical and intuitive sense that Treasury yields should move back up to 1.50% or 2%, but we are concerned with the rest of the market about the speed at which it’s getting there,” said Mona Mahajan, investment strategist at Allianz Global Investors LLC.
Federal Reserve Chair Jerome Powell sounded a gentle word of caution to the bond market on Thursday that he’s watching the jump higher in long-term interest rates, but stopped well short of trying to rein them in.
Treasuries extended losses and inflation expectations reached new session highs as Powell spoke, with some traders disappointed that the Fed chair didn’t provide any specifics on what the central could possibly do to tamp down long-term rates if they desired.
Powell Sends Dovish Message That Leaves Bond Market Disappointed
Meanwhile, the U.S. Senate voted to take up a $1.9 trillion relief bill backed by President Joe Biden, setting off a debate expected to end this weekend with approval of the nation’s sixth stimulus since the pandemic-triggered lockdowns that began a year ago.
Elsewhere, oil prices leaped after the OPEC+ alliance surprised traders with its decision to keep output unchanged. Bitcoin fell with other risk assets.
Shares in London Stock Exchange Group Plc fell after it issued an upbeat outlook that contrasted with uncertainty about the impact of Brexit.
These are some of the main moves in markets:
Stocks
Futures on the S&P 500 Index decreased 0.5% as of 8:33 a.m. London time.The Stoxx Europe 600 Index fell 1%.The MSCI Asia Pacific Index dipped 0.6%.The MSCI Emerging Market Index declined 0.7%.
Currencies
The Bloomberg Dollar Spot Index advanced 0.3%.The euro fell 0.3% to $1.1934.The British pound dipped 0.3% to $1.386.The onshore yuan weakened 0.1% to 6.476 per dollar.The Japanese yen weakened 0.3% to 108.35 per dollar.
Bonds
The yield on 10-year Treasuries declined two basis points to 1.54%.The yield on two-year Treasuries declined one basis point to 0.13%.Germany’s 10-year yield increased one basis point to -0.30%.Japan’s 10-year yield decreased four basis points to 0.096%.Britain’s 10-year yield advanced three basis points to 0.756%.
Commodities
West Texas Intermediate crude increased 1.2% to $64.62 a barrel.Brent crude gained 1.4% to $67.69 a barrel.Gold weakened 0.2% to $1,694.10 an ounce.
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