US stock futures drop as Trump hits out at China markets

Bloomberg | Updated on July 30, 2019

File Photo   -  Reuters

American index futures declined along with stocks in Europe as US President Donald Trump lashed out at China in a series of tweets, just as the two countries restart trade negotiations. The pound extended its losing streak on fears of a no-deal Brexit, and the dollar was steady.

Broadly positive earnings from companies including Xerox, Merck and Procter & Gamble did little to boost contracts on the three main US stock gauges as Trump said China continues to rip off America and that the Asian nation hasn’t followed through with pledges to buy US agricultural goods. In Europe, disappointing forecasts from the likes of Reckitt Benckiser and Bayer compounded a glum mood, and the Stoxx Europe 600 Index fell the most in two months.

Treasury yields extended a small drop and the dollar drifted as the Fed’s preferred measure of underlying US inflation showed signs of rebounding back toward the central bank’s target. The common currency was flat and core euro-zone bonds were mostly steady as the latest data added to the gloomy outlook for the regions economy. The yen gained after the Bank of Japan left interest rates unchanged. Oil extended an advance.

On Wednesday the Fed is widely anticipated to cut rates. Chairman Jerome Powells post-meeting press conference will be scoured for clues on the policy path as signs of slowing growth put pressure on central banks around the world.

Stocks futures on the S&P 500 Index decreased 0.4% in early trade . The Stoxx Europe 600 Index decreased 1.2% to the lowest in more than a month on the biggest dip in two months. The U.K.s FTSE100 Index declined 0.1%. The MSCI Emerging Market Index increased less than 0.05%. The MSCI Asia Pacific Index advanced 0.3%, the largest gain in a week.

Published on July 30, 2019

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