U.S. stock futures dropped after an early equity rally petered out in Asia, where volume was low as many markets across the world remain closed for the Easter holiday. The dollar edged lower and Treasury yields increased.
American shares look set to start April on the back foot after the S&P 500 Index and Dow Jones Industrial Average posted their first quarterly losses since 2015. Contracts for the Nasdaq 100 fell again after President Donald Trump renewed his criticism of Amazon.com Inc. over the weekend, this time tweeting that the online giant “must pay real costs (and taxes) now!”
Equities in Japan, China and South Korea declined during late Monday trading, reversing an earlier advance. The yen was steady as traders digested a poll showing improved support for Prime Minister Shinzo Abe’s cabinet. The South Korean won rose to its strongest against the dollar in over three years as tensions in the region showed further signs of easing. The euro was little changed and the pound pushed higher.
Investors are entering the second quarter on the defensive after the worst three months for global stocks in more than two years. February and March were characterized by a surge in volatility amid a barrage of concerns, from escalating trade tensions to a selloff in technology shares. Focus this week will turn to U.S. labor market data Friday, which is expected to show unemployment fall to its lowest level since 2000. Traders are also waiting for more details on American plans to slap tariffs on Chinese imports.
“With interest rates still relatively low, and generating negative real returns, if you remain in cash the yield attraction of equities and the growth prospects still make it look the best alternative,” Stephen Davies, founder and CEO of Javelin Wealth Management, told Bloomberg TV on Monday.
Elsewhere, West Texas crude oil climbed above $65 per barrel after capping a third straight quarterly gain. Bitcoin clawed its way back above $7,000.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index fell 0.3 per cent as of 9:55 a.m. London time. The Shanghai Composite Index dipped 0.2 per cent. The MSCI Emerging Market Index gained 0.4 per cent.
Currencies
The Bloomberg Dollar Spot Index fell 0.1 percent. The euro rose less than 0.1 per cent to $1.2331. The British pound advanced 0.4 per cent to $1.4067, the first advance in a week.
Bonds
The yield on 10-year Treasuries gained two basis points to 2.76 per cent, the largest increase in a week.
Commodities
Gold increased 0.5 per cent to $1,331. an ounce, the biggest climb in more than a week. West Texas Intermediate crude increased 0.6 per cent to $65.33 a barrel.