Stocks Resume Drop After Choppy Week; Boeing Falls: Markets Wrap

(Bloomberg) -- European stocks followed Asian markets lower on Monday, while bonds steadied as investors recalibrated their bets in the wake of last week’s selloff. Shares of Boeing Co. tumbled almost 10% in US premarket trading.

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The Stoxx 600 benchmark lost 0.3% as the Hang Seng China Enterprises Index had its lowest close since November 2022, without a clear driver for the move. Futures in the US edged lower with Boeing in focus as groundings of the 737 Max 9 aircraft gathered pace globally. Brent crude slid below $78 after Saudi Arabia cut official selling prices for all regions amid persistent weakness in the market.

Markets are looking for direction after mixed US economic data on Friday capped a week that saw global equities slide the most since October on speculation the Federal Reserve was in no rush to reduce interest rates. The US inflation print due Thursday as well as the start of earnings season at the end of the week may offer investors further catalysts.

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Sentiment remains quite negative in China, Nomura Group analysts including Chetan Seth in Singapore wrote in a client note. “There have been more signs of support for the economy, but equity investors still do not appear convinced,” they said.

In Europe, German factory orders rose much less than anticipated in November, a discouraging sign for Europe’s largest economy, data showed on Monday. Euro-zone retail sales and consumer confidence numbers due later in the day may give a better guide on the region’s economic recovery.

The yield on US Treasuries was little changed at 4.05%. Some traders are unfazed by the recent pullback, seeing it as a chance to seize on elevated yields before the Federal Reserve starts driving down rates.

The dynamic was on display Friday, when bond prices dipped after the Labor Department reported that job growth unexpectedly accelerated last month. But the selloff was curtailed because buyers swooped in as 10-year Treasury yields neared 4.1%, the highest since mid-December.

In commodities, Brent fell more than 1%, halting last week’s rally after the Saudi price cuts. The reductions underscored a worsening global outlook amid strong global supply, including from the US, and outweighed concern over Red Sea tensions and supply disruptions in Libya.

Key events this week:

Eurozone economic confidence, retail sales, consumer confidence, Monday
Atlanta Fed President Raphael Bostic speaks, Monday
US House returns from recess, Monday
Australia retail sales, Tuesday
Japan Tokyo CPI, household spending, Tuesday
Eurozone unemployment, Tuesday
World Economic Forum’s global risks report released, Wednesday
US wholesale inventories, Wednesday
Deadline for US Securities & Exchange Commission to vote on Bitcoin ETF applications, Wednesday
New York Fed President John Williams speaks, Wednesday
US CPI, initial jobless claims, Thursday
China CPI, PPI, trade, Friday
France CPI, Friday
UK industrial production, Friday
US PPI, Friday
Bank of America, Bank of New York Mellon, BlackRock, Citigroup, JPMorgan Chase and Wells Fargo report fourth-quarter results, Friday
Minneapolis Fed President Neel Kashkari speaks, Friday

Stocks

The Stoxx Europe 600 fell 0.3% as of 9:18 a.m. London time
S&P 500 futures fell 0.1%
Nasdaq 100 futures fell 0.2%
Futures on the Dow Jones Industrial Average fell 0.4%
The MSCI Asia Pacific Index fell 0.7%
The MSCI Emerging Markets Index fell 0.7%

Currencies

The Bloomberg Dollar Spot Index was little changed
The euro fell 0.1% to $1.0930
The Japanese yen was little changed at 144.52 per dollar
The offshore yuan fell 0.1% to 7.1717 per dollar
The British pound fell 0.3% to $1.2681

Cryptocurrencies

Bitcoin fell 0.8% to $43,910.14
Ether fell 0.7% to $2,225.8

Bonds

The yield on 10-year Treasuries was little changed at 4.05%
Germany’s 10-year yield advanced two basis points to 2.17%
Britain’s 10-year yield advanced three basis points to 3.81%

Commodities

Brent crude fell 1% to $77.95 a barrel
Spot gold fell 0.9% to $2,027.83 an ounce

This story was produced with the assistance of Bloomberg Automation.

--With assistance from Matthew Burgess and Tassia Sipahutar.