Global Equities Rally Slows as Treasuries Advance: Markets Wrap

(Bloomberg) — The rally that’s added $6 trillion to global stocks this month slowed on Thursday, with investors selling cyclicals and flocking back to tech shares perceived as safer amid a deteriorating coronavirus situation. Treasuries advanced. Futures on the S&P 500 Index pared a drop, while Nasdaq 100 contracts turned […]

(Bloomberg) — The rally that’s added $6 trillion to global stocks this month slowed on Thursday, with investors selling cyclicals and flocking back to tech shares perceived as safer amid a deteriorating coronavirus situation. Treasuries advanced.

Futures on the S&P 500 Index pared a drop, while Nasdaq 100 contracts turned a decline into a 0.4% gain. European stocks headed toward their first drop of the week on disappointing earnings reports tied to pandemic, though tech shares remained a bright spot.

Siemens AG slumped after issuing a cautious 2021 outlook and proposing a dividend cut, while the U.K.’s Legal & General Group Plc helped pull down fellow insurers saying it may keep its final 2020 dividend flat.

Fears that an intensifying pandemic will curb the economic rebound threaten this month’s almost 10% surge in global equities. The International Energy Agency on Thursday cut forecasts for global oil demand amid new lockdown measures. As it cautioned that a vaccine breakthrough won’t quickly revive markets, investors kept an eye on new restrictions emerging from Hong Kong to New York.

“In the near term, the resurgence of the virus is beginning to make new worries,” Torsten Slok, chief economist at Apollo Global Management Inc., said on Bloomberg TV. “It looks like this will end up being a W-shaped recovery.”

Global deaths jumped by more than 12,000 and U.S. new daily cases set a record, with the early epicenter of New York setting measures to tamp down a fresh wave. New York City ordered bars and restaurants with liquor licenses to close at 10 p.m. as officials. New infections may be steadying or easing in some of Europe’s virus hot spots.

On the vaccine front, Moderna Inc. rose almost 5% in pre-market trading after saying its trial has reached a key target for analyzing the shot’s effectiveness.

These are some key events coming up:

European Central Bank President Christine Lagarde, Governor Andrew Bailey and Federal Reserve Chairman Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World.”U.S. CPI data for October is due on Thursday.Finance ministers and central bankers from the Group of 20 hold an extraordinary meeting Friday to discuss bolder action to help poor nations struggling to repay their debts.

These are some of the main moves in markets:

Stocks

The Stoxx Europe 600 Index decreased 0.3% as of 11:03 a.m. London time.Nasdaq 100 Index futures gained 0.4%.Futures on the S&P 500 Index decreased 0.1%.The MSCI Asia Pacific Index rose 0.1%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.1%.The British pound dipped 0.2% to $1.3194.The Japanese yen strengthened 0.1% to 105.34 per dollar.The Turkish lira strengthened 1.1% to 7.7134 per dollar.

Bonds

Germany’s 10-year yield decreased less than one basis point to -0.51%.Britain’s 10-year yield dipped one basis point to 0.405%.France’s 10-year yield fell less than one basis point to -0.27%.Japan’s 10-year yield fell one basis point to 0.03%.

Commodities

West Texas Intermediate crude rose 0.1% to $41.48 a barrel.Gold strengthened 0.2% to $1,869.39 an ounce.Soybeans decreased 0.1% to $11.51 a bushel.Iron ore declined 1.1% to $119.75 per metric ton.

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