(Bloomberg) — The stock market selloff showed signs of easing Monday though investors remained on edge after the biggest two-day slide for global shares since June. The dollar edged higher and crude oil extended its recent slide.
Shares were little changed in Japan and Australia, and climbed in South Korea. U.S. futures pared earlier losses, while European contracts pointed to solid gains. U.S. markets are shut Monday for a holiday after the worst week for the Nasdaq since March. The pound ticked lower going into another round of Brexit negotiations. Hong Kong markets will be in focus after protests again flared up on the city Sunday. Treasury futures were flat after a slide in bonds on Friday, a move which Australian debt tracked on Monday.
“Risk assets remain fragile following Thursday’s tech-led rout and volatility spike,” said Ben Emons, managing director for global macro strategy at Medley Global Advisors. “With stimulus having been key for supporting equities and such lofty valuations, its renewal will be crucial not only for the recovery, but as a driver for equities as job risks mount.”
Traders are on tenterhooks as the week kicks into gear and they continue to chart the path for a global economy dealing with a pandemic. Federal Reserve Chairman Jerome Powell responded positively to Friday’s U.S. employment data, but reiterated his view that the economic recovery has a long road ahead. One big event later this week is the European Central Bank’s policy meeting.
Elsewhere, crude oil was back down near $39 a barrel and gold was steady.
Here are some key events coming up:
The next Brexit negotiating round begins with face-to-face discussions between the U.K. and the EU in London.The ECB will probably hold rates on Thursday but indicate that downside risks have intensified, suggesting further easing is possible before year-end.U.S. CPI data is due Friday, with consumer prices expected to rise in August for a third straight month.
These are the main moves in markets:
Stocks
S&P 500 futures were little changed as of 9:50 a.m. in Tokyo. The index fell 0.8% on Friday.Japan’s Topix index gained 0.1%.Australia’s S&P/ASX 200 Index fell 0.1%.South Korea’s Kospi index added 0.7%.
Currencies
The yen slipped 0.1% to 106.32 per dollar.The Bloomberg Dollar Spot Index rose 0.1%.The euro held at $1.1842.The offshore yuan was at 6.8333 per dollar.The pound slipped 0.2% to $1.3256.
Bonds
The yield on 10-year Treasuries climbed eight basis points to 0.72% on Friday. Futures were little changed, with the cash market shut Monday for Labor Day.Australia’s 10-year bond yield climbed six basis points to 0.95%.
Commodities
West Texas Intermediate crude declined 1.7% to $39.11 a barrel.Gold was steady at $1,935.79 an ounce.
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