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Fight of stocks in weak profits; Euro strengthens: markets wrap



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US and European stock markets tumbled on Tuesday, while Asian stocks fell after gains from the world's top cellphone maker and Google's Alphabet disappointed investors. Treasury bonds were stable a day before the Federal Reserve's next political decision.

Stoxx Europe 600 went red, led by declining shares in telecoms and mining, as S & P 500 futures also pointed to a soft opening in New York. Shares of Tech were poised to retreat after worse-than-expected Alphabet results after Monday's close, and after profit by Korean giant Samsung Electronics has lost fresh analysts' estimates. Shares in Hong Kong, South Korea and Australia fell although trading was lower than normal thanks to a holiday in Japan. Shares rose in Shanghai despite poor Chinese manufacturing data. The euro contributed to gains after regional GDP exceeded estimates and inflation in some regions of Germany accelerated in April.

After a strong start to the year, many bond and stock markets seem to have no direction this week. Traders will be looking for signs of economic data, a Fed monetary policy meeting on Wednesday and earnings reports from companies such as Apple, GE and McDonald's.

"It's not a stellar reporting season – I do not think anyone expected this," said Nick Nelson, UBS 'director of European stock strategy at Bloomberg Television. "But it certainly is better than the fourth quarter. And this fits with part of the stabilization in the broader data of the euro zone, emerging markets and China. "

Meanwhile, the next round of trade talks between the US and China will come this week with important issues still unresolved. But enforcement mechanisms are "close to being met," according to Treasury Secretary Steven Mnuchin.

Elsewhere, South Korea fell to a new two-year low against the dollar following the loss of profits from Samsung and disappointing data from China.

Here are some notable events this week:

Companies reporting profits include: Apple, GE, Pfizer, HSBC, Macquarie, Royal Dutch Shell and McDonald's. Business Rep. Robert Lighthizer and Treasury Secretary Steven Mnuchin landed in Beijing on Tuesday and will hold a new round of talks before Chinese Deputy Prime Minister Liu He will visit Washington next week . China and the US are hoping to seal an agreement in early May. The decision of the US Fed rate is Wednesday, while the Bank of England sets interest rates on Thursday. Friday brings the US jobs report: projected increase of 187 thousand. April. Economists expect an unemployment rate of 3.8%, with average hourly earnings growth rising to 3.3%.

These are the main movements in the markets:

Actions

S & P 500 futures fell less than 0.05 percent from 6:21 p.m., New York time. The Stoxx Europe 600 index fell 0.2 percent. The Shanghai Composite index rose 0.5 percent, the biggest gain in more than a week. The Pacific Index fell 0.1 percent. The MSCI Emerging Market Index fell 0.2 percent.

Coins

The Bloomberg Dollar Spot index fell 0.1 percent. The euro rose 0.2 percent. The MSCI Emerging Markets Currency Index fell 0.1 percent. The South Korean won fell 0.8 percent to the weakest in more than two years.

Titles

Two-year Treasuries yields fell one basis point to 2.28 percent. Yields on 10-year Treasuries rose less than a base point to 2.53 percent. Japan's 10-year yield remained unchanged at -0.04 percent.

Commodities

Gold rose 0.4 percent to $ 1,285.12 per ounce. Texas Intermediate crude rose 1 percent to $ 64.14 a barrel, the biggest gain in a week. Copper grew 0.8 percent, the largest increase in nearly two weeks. Iron ore rose 2 percent to $ 93.40 per tonne. metric ton, the highest in more than two weeks.

– With the help of Todd White, Joanna Ossinger and Andreea Papuc.

To contact the reporter in this story: Todd White in Madrid at twhite2@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net, Christopher Anstey at canstey@bloomberg.net

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