(Bloomberg) – US stocks drifted on Tuesday as European stocks tried to hold on to a record high as predominantly positive earnings reports helped offset new concerns over China’s tech crackdown and lower oil prices raw.
The S&P 500 was little changed with Ralph Lauren Corp., Gartner Inc. and Eli Lilly & Co. gaining after profits. Meanwhile, the Nasdaq 100 rose even as Chinese state media criticized the games’ “spiritual opium”, pushing down shares of Tencent Holdings Ltd. and other stocks in the New York trade.
The 10-year US Treasury yield fell to 1.16% after holding just below 1.2% earlier. The dollar was weaker against its major peers.
In Europe, energy stocks led the advance of the Stoxx Europe 600 index after BP Plc followed its Big Oil peers by raising dividends and buying back stocks. However, a more pronounced drop in oil prices threatened the gains. Meanwhile, tech stocks were among the biggest losers with Prosus NV – which owns a stake in Tencent – plunging more than 6%. A Chinese price survey has also weighed on chipmakers, with the shortfall of Infineon Technologies AG adding to concerns.
The multi-month advance in Treasuries for some commentators raises fears that a weaker period is looming, although second-quarter earnings were mostly robust. Traders are awaiting key US employment data this week to assess the recovery and monitor the impact of price pressures triggered by the pandemic-related disruptions.
âThe past few weeks and months have been a turbulent and turbulent time for stocks,â wrote Willie Delwiche, investment strategist at All Star Charts. âUS large-cap indexes have gone up and up, while below the surface (and overseas) the chopping and churning have had a bearish bias. Strong beliefs about breakouts or breakdowns were not rewarded. “
Meanwhile, politically, the reduction debate continues. Federal Reserve Governor Christopher Waller has said he could back a phased-down announcement by September, if the next two monthly U.S. employment reports show continued gains.
Crude oil fell below $ 70 a barrel in New York City. Bitcoin has hovered below $ 39,000.
Here are some key events to watch out for this week:
Bank of England expected to keep benchmark interest rate and bond buying target unchanged on Thursday Reserve Bank of India monetary policy decision, briefing Friday US jobs report expected to show another month sturdy hiring friday
For more market analysis, read our MLIV blog.
The S&P 500 was little changed at 9:48 a.m. New York time The Nasdaq 100 was up 0.3% The Dow Jones Industrial Average was down 0.2% The Stoxx Europe 600 was little changed The MSCI World index was little changed
Bloomberg Dollar Spot Index changed little Euro changed little at $ 1.1864 British Pound changed little at $ 1.3890 Japanese Yen rose 0.4% to 108.92 per dollar
The 10-year Treasury bill yield fell two basis points to 1.16% Germany’s 10-year yield was little changed at -0.49% Britain’s 10-year yield declined decreased by one basis point to 0.51%.
West Texas Intermediate crude fell 2.4% to $ 69.52 a barrel. Gold futures fell 0.3% to $ 1,816.90 an ounce
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