(Bloomberg) — U.S. stock-index futures fell and the dollar extended a rally as faltering growth and China’s regulatory curbs compounded risks before the Federal Reserve’s Jackson Hole symposium next week.
September contracts on the S&P 500 Index dropped 0.6% after the underlying gauge ended a choppy session with a gain on Thursday. The dollar rose for a fifth day, its longest winning streak in two months. Treasury yields continued a slide. A selloff in commodities eased.
Investors are fleeing to the safety of Treasuries and the dollar, spurring inflows into the U.S. markets that cushion the impact of a global selloff on New York-listed equities. However, the rapid spread of the delta virus variant, China’s ever-widening crackdown on big tech, and concerns about valuations are stoking expectations for a correction.
“The delta variant of Covid is significantly more serious than anyone is really even pricing into the market,” Hilary Kramer, chief investment officer at Kramer Capital Research, said on Bloomberg Television. “We know that tapering is coming. We know that the market is getting tired.”
European stocks got no respite from Thursday’s selloff amid continuing risks from the pandemic. The benchmark Stoxx Europe 600 Index was heading for the biggest weekly loss since February. MSCI Inc.’s Asia-Pacific gauge was at the lowest since around November. Shares slid in China and Hong Kong was poised for a bear market.
Tougher rules for handling user data are Beijing’s latest step against big tech. Alibaba Group Holding Ltd. hit another record low and will be watched when the U.S. premarket trading starts. Analysts cautioned that options expirations due Friday in the U.S. may fuel volatility.
Crude oil advanced for the first time in seven days, with the West Texas Intermediate futures trading just below $64 per barrel. Iron ore and copper also trimmed weekly losses.
Bitcoin extended gains to a second day and traded above $47,000 apiece.
For more market analysis read our MLIV blog.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.3% as of 8:28 a.m. London timeFutures on the S&P 500 fell 0.6%Futures on the Nasdaq 100 fell 0.4%Futures on the Dow Jones Industrial Average fell 0.7%The MSCI Asia Pacific Index fell 1.1%The MSCI Emerging Markets Index fell 1.1%
Currencies
The Bloomberg Dollar Spot Index rose 0.2%The euro was little changed at $1.1681The Japanese yen rose 0.1% to 109.62 per dollarThe offshore yuan fell 0.1% to 6.5080 per dollarThe British pound fell 0.2% to $1.3611
Bonds
The yield on 10-year Treasuries declined two basis points to 1.23%Germany’s 10-year yield was little changed at -0.50%Britain’s 10-year yield declined one basis point to 0.53%
Commodities
Brent crude rose 0.5% to $66.80 a barrelSpot gold rose 0.4% to $1,787.42 an ounce
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