(Bloomberg) – The sell-off on Wall Street spread globally as investors grappled with persistently high long-term interest rates, a weak Chinese economy and the threat of Israeli counterattack.
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The Stoxx Europe 600 Index fell 1.3%, in line with Asian and US stocks. After historic gains at the start of the year, investors are warning that the market is past the point of a pullback. And as earnings season begins, there are growing concerns that mega-cap leaders will struggle to justify their lofty valuations.
U.S. stock futures fell on Tuesday in signs of stabilization after the S&P 500 index fell more than 1% for the second straight session. Bank of America and Johnson & Johnson are among the companies scheduled to report today.
“We had a phenomenal rally. If you look at the positioning and sentiment indicators, they were rising,” Christian Muller-Grissmann, head of asset allocation at Goldman Sachs Group, told Bloomberg He said this in a TV interview. “Investors may have been squeezed a little bit by the market, so that's a little bit of a setback.”
He added, “The financial information so far has focused on a part of the Magnificent 7, and it is a little confusing and feels a little unstable.''
The dollar rose against all G10 countries as traders sought refuge after a senior Israeli military official reiterated that there was no choice but to respond to Iran's drone and missile attacks over the weekend.
A number of China's economic indicators showed that the country's economic recovery remains uneven. Gross domestic product and fixed asset investment both exceeded expectations, but data on retail sales and industrial production fell short of expectations.
The Japanese yen remains under pressure after hitting a 34-year low against the dollar overnight.
Brent crude oil was above $90 a barrel and gold was steady.
This week's main events:
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German ZEW survey forecast, Tuesday
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US housing starts, industrial production, Tuesday
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Tuesday's results for Morgan Stanley and Bank of America.
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Fed Vice Chairman Philip Jefferson speaks on Tuesday
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BOE Governor Andrew Bailey speaks on Tuesday
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IMF releases latest global economic outlook on Tuesday
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Eurozone CPI, Wednesday
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Fed issues beige book on Wednesday
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Cleveland Fed President Loretta Mester speaks Wednesday
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Federal Reserve President Michelle Bowman speaks on Wednesday
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BOE Governor Andrew Bailey speaks on Wednesday
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Taiwan Semiconductor's financial results, Thursday
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US conference board leading index, number of existing homes sold, number of new unemployment insurance claims, Thursday
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Fed Director Michelle Bowman speaks Thursday
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New York Fed President John Williams speaks Thursday
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Atlanta Fed President Rafael Bostic speaks Thursday
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BOE Deputy Governor Dave Lumsden and ECB Board Member Joachim Nagel speak on Friday
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Chicago Fed President Austan Goolsby speaks on Friday
stock
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As of 9:33 a.m. London time, the Stoxx European 600 was down 1.5%.
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S&P500 futures little changed
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Nasdaq 100 futures little changed
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Dow Jones Industrial Average futures fell 0.1%.
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MSCI Asia Pacific Index falls 2%
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MSCI Emerging Markets Index falls 1.7%
currency
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Bloomberg Dollar Spot Index rose 0.2%
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The euro fell 0.1% to $1.0613.
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The Japanese yen fell 0.2% to 154.52 yen to the dollar.
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The offshore yuan fell 0.2% to 7.2721 yuan to the dollar.
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The British pound was almost unchanged at $1.2444.
cryptocurrency
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Bitcoin rose 0.4% to $63,431.79
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Ether rose 0.5% to $3,098.7
bond
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The 10-year Treasury yield rose 3 basis points to 4.63%.
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German 10-year bond yield remains unchanged at 2.44%
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The UK 10-year bond yield rose 2 basis points to 4.26%.
merchandise
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Brent crude oil fell 0.1% to $90.29 per barrel.
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Spot gold fell 0.5% to $2,370.57 an ounce.
This article was produced in partnership with Bloomberg Automation.
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