European recession fears weigh on EU stocks, U.S. futures Treasury yields drop; USD keeps climbing AUD sells off on RBA shift to neutral policy Brazilian glitch sends iron ore towards $90 level Key Events
European shares slid lower alongside futures on the , and this morning, spoiling chances for a six-day rally after markedly downbeat reinforced the outlook of a European slowdown and mixed earnings results failed to reassure investors that momentum is not abating.
U.S. President Donald Trump’s on Tuesday, lacking signals of any progress on trade talks with China, also fell short of shoring up market sentiment.
The opened lower, unable to overcome a resistance line since mid October. (PA:) dragged bank stocks lower after the French lender cut its 2020 target—though still beating full-year profits estimates—adding to the weight of broader corporate soft guidance which has been clouding the market since the end of last year. The pan-European benchmark later managed to crawl above neutral levels.
The earlier Asian session once again saw thin trading amid Lunar New Year holidays. However, Trump’s comment on a two-day summit with North Korea leader Kim Jong Un at the end of the month boosted Japan’s by 0.14 percent, even amid a rally. A stronger currency typically weighs on stocks, making a country’s exports less competitive in a global market that is already hyper sensitive to trade jitters.
Global Financial Affairs
In Tuesday’s U.S. session, equities climbed for the fifth straight day, as gains in the technology sector outweighed a retreat in financial shares, triggered by falling Treasury yields. Trading volumes, though, remained low.
S&P 500 Daily Chart
The edged 0.47 percent higher, with nine out of eleven sectors closing in the green. (+1.1 percent) provided the best returns, while (-0.27 percent) slipped lower.
Earnings and economic data