US futures wavered, with Apple Inc. poised to extend losses, while a drop in oil prices weighed on energy stocks.
(Bloomberg) — US futures wavered, with Apple Inc. poised to extend losses, while a drop in oil prices weighed on energy stocks.
Contracts on the Nasdaq 100 were slightly lower, with Apple down 0.5% in premarket trading on concern the steep price of its much-anticipated mixed-reality headset will crimp shipments. European semiconductor firms slid after Taiwan Semiconductor Manufacturing Co. — the main chipmaker to Apple — said capital spending will be at the lower end of its guidance range.
Chevron Corp. fell, while declines in Shell Plc and BP Plc weighed on Europe’s main stock benchmark after crude gave up all its gains spurred by news of Saudi Arabia’s supply cut.
Across global equity markets, the mood was cautious. With the S&P 500 on the edge of a new bull market, there’s a sense among traders that markets have run up too fast on the hype for artificial intelligence.
“Our stance towards equities is a cautious one,” said Steven Bell, chief economist for EMEA at Columbia Threadneedle Investments, noting the asset class doesn’t look cheap and earnings growth forecasts look too optimistic. “We don’t expect a dramatic decline, but bonds look more attractive on a relative basis.”
Meanwhile, the euro weakened and German bonds gained Tuesday after the European Central Bank said euro-area consumer inflation expectations eased significantly in April.
In commodity markets, wheat surged after Ukraine said Russian forces blew up a giant dam in the country’s south, unleashing a torrent of floodwater that threatens thousands of people and poses a potential threat to Black Sea grain supplies. Prices jumped 3% on Tuesday, extending their climb from a 30-month low last week.
Here’s What to Know About the Ukraine Dam Explosion: Q&A
Elsewhere, Australia unexpectedly hiked on Tuesday and kept the door open to further increases, sparking a rally in the country’s currency.
In Turkey, the lira dropped for an 11th day, on track for its longest run of losses in more than a year, amid speculation of less government intervention in markets.
Key events this week:
- China forex reserves, trade, Wednesday
- US trade, consumer credit, Wednesday
- Canada rate decision, Wednesday
- EIA crude oil inventory data, Wednesday
- Eurozone GDP, Thursday
- Rate decisions in India, Peru, Thursday
- Japan GDP, Thursday
- US wholesale inventories, initial jobless claims, Thursday
- China PPI, CPI, Friday
Some of the main moves in markets:
Stocks
- S&P 500 futures were little changed as of 8:18 a.m. New York time
- Nasdaq 100 futures were little changed
- Futures on the Dow Jones Industrial Average were little changed
- The Stoxx Europe 600 rose 0.1%
- The MSCI World index was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro fell 0.3% to $1.0680
- The British pound fell 0.3% to $1.2403
- The Japanese yen was little changed at 139.61 per dollar
Cryptocurrencies
- Bitcoin rose 0.1% to $25,679.73
- Ether rose 0.5% to $1,814.12
Bonds
- The yield on 10-year Treasuries was little changed at 3.68%
- Germany’s 10-year yield declined four basis points to 2.34%
- Britain’s 10-year yield was little changed at 4.21%
Commodities
- West Texas Intermediate crude fell 2.3% to $70.47 a barrel
- Gold futures rose 0.3% to $1,980.30 an ounce
This story was produced with the assistance of Bloomberg Automation.
–With assistance from Jason Scott, Joanna Ossinger, Matthew Burgess, James Poole, Tassia Sipahutar and Yongchang Chin.
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