Stock Rally Slams to a Halt While Treasuries Jump: Markets Wrap
“U.S. stock futures and European equities slid on concern that the blistering rally in risk assets has overshot the economic recovery. Treasuries advanced with gold and the yen. Declines in the U.S. premarket ran from oil drillers to cruise lines. The dollar rose against its major peers for the first time in nine days. Financial shares led losses in the Stoxx Europe 600 Index, while a gauge of European junk-grade credit risk increased the most since April.”
Trade Tensions Poised to Rise as EU-U.S. Talks Break Down
“European Union efforts to soothe transatlantic trade tensions have stalled, according to the bloc’s trade chief, who said the upcoming U.S. election means any breakthrough may be delayed until after November. Washington has “stepped back” in recent weeks from settlement talks aimed at defusing a dispute over aircraft subsidies, Phil Hogan told a meeting of trade ministers in Brussels on Tuesday. Failure to reach an accord means the bloc would impose billions of dollars of tariffs on U.S. exports as soon as July.”
China’s Employment Outlook Expected to Weaken in Third Quarter
“The employment outlook in China will deteriorate in the third quarter because of the disruption to global business caused by the Covid-19 outbreak, a private survey showed. The outlook for net employment will be weaker next quarter than now, according to a survey by ManpowerGroup Inc., the global labor supply company. The index will weaken to 3% in the July-September period from this quarter’s 6%. It was 8% in the same period last year.”
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