Stock Futures Mixed on Vaccine Doubts; Yields Down: Markets Wrap – Yahoo Canada Finance

(Bloomberg) — U.S. and European equity futures were mixed along with stocks in Asia as reports on Moderna Inc.’s coronavirus vaccine added to concern that a successful way to beat the pandemic remains a long way off. Treasuries held an overnight advance.

Japan and India saw the bulk of gains in a mixed Asian session, with Shanghai and Hong Kong in the red. U.S. futures nudged up, while European contracts dropped. The S&P 500 lost ground in the final hour of trading Tuesday, and closed down. Riskier assets had started the week on the front foot after Moderna had fueled hopes for a coronavirus vaccine, but investors are struggling to maintain the optimism. Crude oil slipped below $32 a barrel in New York.

“We are being fairly cautious,” Shawn Matthews, founder and chief investment officer at Hondius Capital Management LP, said on Bloomberg TV. “If you look at the economy, it feels like it’s the summer of hope right now, where everyone is hoping it’s going to turn around.”

Large money managers from Capital Group Inc. to BlackRock Inc. are keeping their faith with equities despite warning calls from some corners of Wall Street. Still, headwinds remain for stocks, not least a deteriorating U.S.-China relationship. In a further sign of tightening scrutiny on capital flows to the Asian nation, Nasdaq is set to unveil new rules for initial public offerings including tougher accounting standards that will make it more difficult for some Chinese companies to list on the exchange.

Walmart and Home Depot both suspended their outlooks for the year, the latest companies to show the difficulties in predicting the road ahead. Earlier, Federal Reserve Chairman Jerome Powell reiterated during a Senate hearing that the central bank is ready to use all the weapons in its arsenal to help the U.S. economy endure the coronavirus pandemic.

Meantime, the New Zealand dollar rose after comments from central bank governor Adrian Orr suggested any move to bring interest rates below zero remain some way off. In Japan, Tokyo Stock Exchange was among stocks which surged amid speculation that it may be a contender to join the Nikkei 225 equity index.

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 rose 0.4% as of 7 a.m. in London. The gauge fell 1.1% on Tuesday.Japan’s Topix index rose 0.6%.Hong Kong’s Hang Seng fell 0.2%.Shanghai Composite dipped 0.4%.South Korea’s Kospi added 0.4%.Australia’s S&P/ASX 200 Index gained 0.3%.Euro Stoxx 50 futures dropped 0.4%.

Currencies

The yen was little changed at 107.75 per dollar.The offshore yuan held at 7.1153 per dollar.The euro bought $1.0945, up 0.2%.

Bonds

The yield on 10-year Treasuries remained at 0.69%.Australia’s 10-year yield fell three basis points to 0.95%.

Commodities

West Texas Intermediate crude was at $31.99 a barrel, up 0.1%.Gold rose 0.2% to $1,747.63 an ounce.

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