European stocks dropped on Friday as fresh quarantine rules for arrivals to the UK dragged down travel and leisure shares. Treasury yields steadied near an eight-week high and the dollar drifted.
The Stoxx Europe 600 Index opened lower after Britain added France, the Netherlands and Malta to its list of countries from which people arriving have to quarantine for 14 days. EasyJet Plc and Tui AG both dropped more than 5%. The euro remained on track for its eighth straight week of gains versus the greenback.
Shares in Hong Kong and China rose as data showed China’s economic recovery continued in July, while futures on the main US equity benchmarks were steady. Gold held to two days of gains and oil headed for a second weekly advance.
Traders continue to bank on further fiscal stimulus to help the nascent recovery, after US and Asian stocks erased most of their pandemic-related losses. After a report showing weekly jobless claims in the US dropped below 1 million for the first time since March, retail sales figures on Friday will offer clues about the health of the consumer recovery.
On the virus front, Joe Biden said US governors should require masks for the next three months, while New Zealand recorded 12 new confirmed local cases of the coronavirus. Germany recorded the highest number of new cases in more than three months, as cases also rose in France, Greece and Spain.
Here are some key events coming up:
- US-China trade talks are expected in coming days.These are the market movers:
- Futures on the S&P 500 Index were little changed at 8:18 a.m. London time.
- The Stoxx Europe 600 Index dipped 0.8%.
- The MSCI Asia Pacific Index gained 0.1%.
- The MSCI Emerging Market Index was little changed.
- The Bloomberg Dollar Spot Index fell 0.1%.
- The euro was little changed at $1.1812.
- The British pound was little changed at $1.3066.
- The onshore yuan was little changed at 6.945 per dollar.
- The Japanese yen strengthened 0.2% to 106.74 per dollar.
- The yield on 10-year Treasuries fell two basis points to 0.70%.
- The yield on two-year Treasuries declined one basis point to 0.16%.
- Germany’s 10-year yield climbed less than one basis point to -0.41%.
- Britain’s 10-year yield increased less than one basis point to 0.247%.
- Japan’s 10-year yield rose one basis point to 0.048%.
- West Texas Intermediate crude declined 0.3% to $42.10 a barrel.
- Brent crude decreased 0.3% to $44.82 a barrel.
- Gold weakened 0.3% to $1,947.42 an ounce.
© 2020 Bloomberg