(April 16): Asian stocks looked set for declines Tuesday after U.S. stocks halted a three-day advance on disappointing bank earnings. Crude oil fell toward $63 a barrel in New York.
Futures pointed lower in Tokyo, Sydney and Hong Kong. The S&P 500 Index slipped from a six-month high as earnings season kicked into high gear. Sentiment was hit after Goldman Sachs Group Inc. missed estimates for sales and trading revenue, while Citigroup Inc. also retreated after its revenue matched expectations. Treasuries and the dollar stabilized.
With Chinese trade and lending data showing signs of improvement for the world’s second-biggest economy, investors are turning to the U.S. earnings season to confirm the resilience of corporate America in the face of numerous challenges to growth. Bank of America Corp. is up on Tuesday. Central banks remain in focus, with Chicago Fed President Charles Evans, who currently sees rates on hold until the fall of 2020, saying that the Federal Reserve may need to cut rates if inflation falls.
Elsewhere, West Texas oil slipped after the longest run of weekly gains in three years as a report showed increased U.S. oil-rig activity. Natural gas futures retreated.
Here are some notable events coming up:
Earnings season rolls on this week, with reports due from: Bank of America, BlackRock, Morgan Stanley, American Express, Johnson & Johnson, Netflix, IBM, United Continental, PepsiCo, Honeywell, Alcoa and Taiwan Semiconductor. The Reserve Bank of Australia releases the minutes of its latest rate-decision meeting Tuesday. Wednesday brings China GDP, industrial production and retail sales data. Stock markets will be closed for Easter holidays in countries including the U.S., U.K. and Germany on Friday.
These are the main moves in markets:
Futures on the Nikkei 225 fell 0.2 percent in Singapore. Australia’s S&P/ASX 200 Index contracts were down 0.3 percent. Hong Kong’s Hang Seng Index futures lost 0.4 percent. The S&P 500 fell 0.1 percent.
The yen was steady at 112.01 per dollar. The offshore yuan held at 6.7066 per dollar. The Bloomberg Dollar Spot Index rose 0.1 percent. The euro traded at $1.1302. The pound was at $1.3094.
The yield on 10-year Treasuries fell one basis point to 2.55 percent.
WTI crude oil fell 0.8 percent to $63.40 a barrel. Brent crude fell 0.4 percent to $71.25 a barrel. Gold was steady at $1,287.91 an ounce. Platinum dipped 1.6 percent to $884.40 an ounce, the lowest in more than a week on the largest decrease in more than two weeks. - Bloomberg