Stocks, US futures fall as China data sour mood - BNN

Stocks dropped from an all-time high as softer economic data and the spread of the coronavirus delta variant sparked concern that the global recovery is faltering.

The S&P 500 retreated on Monday after finishing the week with its 48th record since the end of 2020. A gauge of New York state manufacturing moderated in August, while Chinese retail sales and industrial output data showed activity slowed. Tesla Inc. sank as the U.S. opened a formal investigation on the company’s Autopilot system, citing collisions with parked emergency vehicles.

Investors also awaited signals from the Federal Reserve, with a town hall by Chair Jerome Powell on Tuesday potentially acting as a precursor to the Jackson Hole symposium in late August. For months, the fixed-income market has viewed it as a venue for the Fed to lay out the timing and contours of its expected move to taper its bond-buying program, although for some the resurgence of coronavirus cases is complicating that calculation.

Here are some events to watch this week:

• U.S. Fed Chair Powell hosts a town hall discussion with educators Tuesday
• China’s top legislative body, the National People’s Congress Standing Committee, begins a four-day meeting in Beijing Tuesday
• U.S. retail sales are due Tuesday
• Reserve Bank of Australia minutes are scheduled to be released Tuesday
• Reserve Bank of New Zealand policy decision and briefing by Governor Adrian Orr Wednesday
• FOMC minutes released Wednesday
• Bank Indonesia rate decision and Governor Perry Warjiyo briefing Thursday

These are the main moves in markets:

Stocks

• The S&P 500 fell 0.3 per cent as of 9:30 a.m. New York time
• The Nasdaq 100 rose 0.3 per cent
• The Dow Jones Industrial Average fell 0.2 per cent
• The Stoxx Europe 600 fell 0.5 per cent
• The MSCI World index fell 0.2 per cent

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro fell 0.1 per cent to US$1.1780
• The British pound was little changed at US$1.3858
• The Japanese yen rose 0.3 per cent to 109.22 per dollar

Bonds

• The yield on 10-year Treasuries declined three basis points to 1.25 per cent
• Germany’s 10-year yield was little changed at -0.47 per cent
• Britain’s 10-year yield was little changed at 0.57 per cent

Commodities

• West Texas Intermediate crude fell 3 per cent to US$66.38 a barrel
• Gold futures rose 0.3 per cent to US$1,783.70 an ounce

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Stocks, US futures fall as China data sour mood - BNN
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