Growth angst or air pocket? Stocks nurse losses
A look at the day ahead in U.S. and global markets from Mike Dolan
The worst day for the S&P500 .SPX since 2022 and mounting central bank easing bets suggest markets' serene 'soft landing' scenario is being questioned as China growth worries and U.S. election risks mount.
Even though a withering swoon in megacap tech stocks this week comes in the thick of the corporate earnings season, the incoming aggregate profit growth picture remains buoyant overall. A first cut of second-quarter U.S. GDP estimates later on Thursday will hold that further up to the light.
Jitters about the lofty valuations of the so-called Magnificent Seven stock leaders, worries about excessive spend in artificial intelligence and exposure to China's stuttering economy have all been cited variously for the sharp pullback.
Wednesday's Wall Street stock rout, which saw the S&P 500 mark its first 2%-plus loss in 356 sessions after sharp post-earnings losses for Tesla TSLA. and Alphabet GOOGL.O, sent shares tumbling around the world overnight.
The VIX volatility gauge .VIX topped 19 for the first time since April even as stock futures tried to find a foothold ESc1 on Thursday.
But aided by stepped-up Federal Reserve interest rate cut bets, a second Bank of Canada rate cut of the year on Wednesday and after China's central bank added more cuts to this week's surprise monetary easing, there appeared to be a dash for safety in bonds and havens like Japan's yen JPY= and the Swiss franc CHF= surged.
Despite a heavy diary of new Treasury sales this week, two-year U.S. yields US2YT=RR fell to their lowest since February and the yield curve steepened. Partly on post-election fiscal worries, the 2-to-30-year yield curve US2US30=RR has turned positive to its steepest in almost two years.
And a discombobulating twist behind the soaring yen, which hit its best levels since early May, was rising speculation about a Bank of Japan interest rate rise as soon as next week just when all its peers are in reverse mode.
Sources told Reuters that the central bank is likely to debate whether to raise rates next week and unveil a plan to roughly halve bond purchases in coming years.
China's yuan CNH=, recently tied at the hip yen trends, also jumped.
And yet worries about the world's second largest economy - which potentially faces a ratcheting of trade tariffs and curbs after the U.S. election - was a theme through the stock wobble too.
Europe's China-exposed luxury sector, reeling from this week's earnings disappointment from LVMH LVMH.PA, took another hit on Thursday as Gucci-owner Kering PRTP.PA missed and its stock plunged 8%.
Another standout loser in Europe was Universal Music UMG.AS, which plummeted 26% after reporting a slowdown in its subscription and streaming segment.
Key developments that should provide more direction to U.S. markets later on Thursday:
* US Q2 GDP, weekly jobless claims, June durable goods orders, July Kansas City Fed manufacturing survey
* US corporate earnings: AbbVie, American Airlines, Southwest Airlines, Dow, Eastman Chemical, Honeywell, Union Pacific, Northrop Grumman, PG&E, Dover, Norfolk Southern, Valero Energy, DTE Energy, CMS Energy, Baker Hughes, CBRE, Hasbro, Keurig Dr Pepper, Cincinnati Financial, Principal Financial, Dexcom, Deckers Realty, Juniper Networks, L3Harris, Verisign, Weyerhaeuser, Wills Towers Watson etc
* European Central Bank President Christine Lagarde speaks
* US Treasury sells $44 billion of 7-year notes and $90 billion of 4-week bills
S&P500 breaks calm streak with 2%+ drop https://tmsnrt.rs/3A8anwg
Atlanta Fed's US "GDPNow" estimate running at 2.6% https://tmsnrt.rs/3YefB3T
Equity rout extends into Europe https://reut.rs/46jhU7z
Gap between U.S. and Japanese bond yields narrows https://reut.rs/3WCxkRl
Bank of Canada cuts interest rate for second time to 4.5% https://reut.rs/49CUpYc
By Mike Dolan, editing by Christina Fincher
mike.dolan@thomsonreuters.com
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
