(Bloomberg) — Most stocks fell Thursday as investors weighed corporate earnings, elevated inflation and the outlook for China’s property sector. Treasuries and the dollar were little changed.
Most Read from Bloomberg
Europe’s Stocks 600 index and U.S. futures were in the red following a mixed Wall Street session in which the S&P 500 neared a record and the tech-heavy Nasdaq 100 slipped. In Asia, ailing China Evergrande Group sank on a worsening cash squeeze, while other developers rallied after regulators said their funding needs are being met.
Nickel climbed to fresh seven-year highs and aluminum rebounded after Tesla Inc. highlighted the two metals in warning of knock-on cost pressures from rising materials prices.
Tesla reported third-quarter revenue that fell short of Wall Street estimates but managed to beat profit projections, overcoming supply-chain challenges that have stymied competing automakers. European autos fell after Volvo Group warned that the global semiconductor shortage will continue to weigh on the production of trucks, even as it posted better-than-expected earnings.
Corporate results have tempered but not dissipated worries that cost pressures — stoked by an energy crunch and supply-chain snarls — could slow the pandemic recovery. Investors are also grappling with the prospect of reduced central bank support and watchful of the travails in China’s real-estate sector.
In the latest Federal Reserve comments, Governor Randal Quarles said he favors an initial move to slow monetary stimulus next month and is concerned by a broadening of inflationary pressures that could require a policy response.
The Fed is “trapped in a very difficult situation,” David Kudla, chief executive officer at Mainstay Capital Management, said on Bloomberg Television. That’s because of the possibility of reduced stimulus followed by rate hikes amid a significant slowing of economic expansion, he said.
The unprecedented spike in power and gas prices is the first topic for EU leaders in their two-day summit starting Thursday in Brussels, but the bloc’s ability to act is extremely limited.
Crude oil was steady and Bitcoin retreated from an all-time peak, while optimism about digital assets helped push the overall value of cryptocurrencies to a record of more than $2.7 trillion.
For more market analysis, read our MLIV blog.
Events to watch this week:
-
U.S. Conference Board leading index, U.S. existing home sales, jobless claims, Thursday
-
Fed Chair Jerome Powell takes part in policy panel discussion, Friday
Some of the main moves in markets:
Stocks
-
The Stoxx Europe 600 fell 0.1% as of 8:49 a.m. London time
-
Futures on the S&P 500 fell 0.2%
-
Futures on the Nasdaq 100 fell 0.2%
-
Futures on the Dow Jones Industrial Average fell 0.2%
-
The MSCI Asia Pacific Index rose 0.4%
-
The MSCI Emerging Markets Index rose 0.5%
Currencies
-
The Bloomberg Dollar Spot Index was little changed
-
The euro was little changed at $1.1644
-
The Japanese yen rose 0.2% to 114.06 per dollar
-
The offshore yuan was little changed at 6.3956 per dollar
-
The British pound fell 0.1% to $1.3810
Bonds
-
The yield on 10-year Treasuries was little changed at 1.65%
-
Germany’s 10-year yield was little changed at -0.13%
-
Britain’s 10-year yield was little changed at 1.15%
Commodities
Most Read from Bloomberg Businessweek
©2021 Bloomberg L.P.
