U.S. futures drop as global rally fizzles out Financials drag STOXX 600 lower on Societe Generale restructuring plans Treasurys, dollar climb as Powell talks up U.S. economy Oil slips on surprise inventory and record U.S. production Key Events
European shares edged lower and futures on the , and extended a retreat this morning as the global equity rally lost momentum, partly weighed down by rising demand for U.S. Treasurys.
The ended a seven-day rally as both automakers and financials stocks sold off. The latter sector took a hit after French investment bank Societe Generale (PA:) announced it will restructure its business model—trimming down its trading operations and risk-weighted assets—to adjust to tougher capital markets conditions, which also forced the lender to cut its profitability targets through 2020.
Earlier, during the Asian session, the Lunar New Year holiday continued to cause a dearth of signals for traders. Japan’s dropped 0.59 percent, pressured by a raft of corporate earnings, though Softbank Group (T:) surged 18 percent as it disclosed plans for its biggest-ever buyback.
Global Financial Affairs
On Wednesday, in yet another session characterized by muted volume, U.S. stocks halted a five-day winning streak over a batch of headwinds, including trade uncertainty, global slowdown risks, the looming prospect of another government shutdown and a strengthening .
The (-0.22 percent) in particular fell for the first time in six sessions, with (-2.24 percent) as the main laggard. (-0.59 percent) also lagged, despite U.S. President Donald Trump’s restatement that a border security wall will indeed be built up. Meanwhile, (+0.45 percent) outperformed even as Trump also vowed to tackle high prescription drug prices in his .
Technically, the SPX found resistance beneath the 200 DMA, as its RSI and MACD are set to fall from overbought conditions, triggering sell signals.
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