European stocks declined on Monday and U.S. equity futures drifted lower as investors awaited a fresh batch of corporate earnings and some key central bank meetings this week. Crude oil rose following supply disruptions in Libya and Iraq.
The Stoxx Europe 600 Index fell, dragged down by retailers and banks. Contracts on the main American equity benchmarks were modestly lower, though U.S. markets are closed Monday for the Martin Luther King Jr. holiday. Equities advanced in most Asian markets, though several saw thin volumes thanks to the American holiday. European bonds were mixed and range-bound, while the pound slipped ahead of U.K. jobs data due tomorrow.
Brent crude jumped back above $65 a barrel as unrest hit key production regions. Iraq temporarily stopped output at an oil field on Sunday, while Libyan production almost ground to a halt after armed forces shut down a pipeline.
Jitters in the oil market appear to be sapping some optimism after recent bullishness, spurred by the signing of the initial Sino-American trade deal and economic indicators from China and the U.S. providing signs the global outlook is improving. Investors now turn their attention back to corporate earnings after solid results from the biggest banks on Wall Street. Key central bank meetings in Europe and Japan are also on the agenda.
“We are entering 2020 on a more stable footing with economies globally stabilizing and looking like they’re turning up, and the phase one trade deal,” Anne Anderson, head of fixed income for Australia at UBS Asset Management, told Bloomberg TV in Sydney. “So it’s a bit more positive with regard to the economic fundamentals.”
Here are some events to watch out for this week:
Companies including Netflix, IBM, UBS, Procter & Gamble and Hyundai will post results.Policy decisions are due from central banks including Japan, Canada, Indonesia and the European Central Bank.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, opens in Davos, Switzerland.
These are the main moves in markets:
Futures on the S&P 500 Index declined 0.2% as of 9:22 a.m. London time.The Stoxx Europe 600 Index decreased 0.2%.The MSCI Asia Pacific Index was little changed.The MSCI Emerging Market Index fell 0.1%.
The Bloomberg Dollar Spot Index increased 0.1%.The euro decreased 0.1% to $1.1086.The British pound sank 0.4% to $1.2969.The onshore yuan was little changed at 6.864 per dollar.The Japanese yen was little changed at 110.16 per dollar.
Germany’s 10-year yield advanced less than one basis point to -0.21%.Britain’s 10-year yield decreased one basis point to 0.624%.Japan’s 10-year yield advanced one basis point to 0.01%.
West Texas Intermediate crude climbed 0.3% to $58.74 a barrel.Iron ore declined 0.1% to $94.45 per metric ton.Gold advanced 0.2% to $1,560.34 an ounce.