(Bloomberg) — Stocks dropped on Thursday amid a retreat in technology shares and caution ahead of a Federal Reserve gathering that may provide more clues about its approach to paring stimulus. The dollar rose.
The Stoxx Europe 600 Index fell 0.6%, dragged lower by tech shares and retailers, with media shares the lone bright spot. MSCI Inc.’s Asia-Pacific gauge snapped a three-day rally, with Chinese tech names slumping on disappointing earnings and Beijing’s crackdown on private industries.
U.S. equity futures declined following another record close for the S&P 500 and Nasdaq 100. The 10-year U.S. Treasury yield held an advance. Traders are looking ahead to the Jackson Hole symposium, which may offer fresh insight on how the Fed intends to scale back bond purchases.
Views are split on whether Chairman Jerome Powell’s speech to the Jackson Hole meeting Friday will provide a clearer guide on tapering emergency Fed support. While the ongoing economic rebound and elevated inflation add to the case for starting policy normalization, the fast-spreading delta virus strain threatens a slower pace of recovery than some had expected.
Powell’s “speech will likely emphasize the economic recovery is well past the crisis and that they will shortly announce they are ready to taper asset purchases,” Edward Moya, senior market analyst at Oanda, wrote in a note.
Elsewhere, WTI crude oil dipped to around $68 a barrel, paring a rally this week driven by bets that demand will weather the delta virus strain’s impact on the economic recovery. Gold fell below $1,790 an ounce and Bitcoin slid to around $47,000.
Here are some events to watch this week:
Fed officials attend the Jackson Hole Economic Policy Symposium from Thursday through SaturdayU.S. GDP, initial jobless claims ThursdayJuly U.S. personal income and spending data Friday. Investors will scrutinize the personal consumption expenditures price index, an inflation measure closely watched by the Fed.
For more market analysis read our MLIV blog.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 fell 0.7% as of 8:16 a.m. London timeFutures on the S&P 500 fell 0.2%Futures on the Nasdaq 100 fell 0.3%Futures on the Dow Jones Industrial Average fell 0.2%The MSCI Asia Pacific Index fell 0.6%The MSCI Emerging Markets Index fell 0.7%
Currencies
The Bloomberg Dollar Spot Index rose 0.1%The euro was little changed at $1.1768The Japanese yen was little changed at 110.12 per dollarThe offshore yuan was little changed at 6.4815 per dollarThe British pound fell 0.1% to $1.3743
Bonds
The yield on 10-year Treasuries was little changed at 1.34%Germany’s 10-year yield was little changed at -0.42%Britain’s 10-year yield was little changed at 0.60%
Commodities
Brent crude fell 0.4% to $71.96 a barrelSpot gold fell 0.3% to $1,785.85 an ounce
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