(Bloomberg) — Asian stocks and European futures fell as warnings from the Federal Reserve on the need for more stimulus injected fresh jitters into an already weak September for global equities. The dollar continued its recent runup and is on course for the strongest week since April.Shares in Seoul underperformed amid signs of escalating tensions with North Korea. Hong Kong and China were also lower, with the MSCI gauge of regional shares heading for its biggest fall in two months.S&P 500 futures fluctuated. The U.S. equities gauge dropped on Wednesday to an eight-week low, with losses from its recent high now almost 10%. Fed Chairman Jerome Powell reiterated there’s a long way to go for the economic rebound, which will likely require more support. The urgent need for further fiscal stimulus was also stressed by other Fed officials. Treasuries were little changed.The caution comes as virus cases tick higher in the U.S. and surge in other nations. Some European countries have resorted to more social distancing, rattling investors. Traders are losing faith in the strength of the economic recovery, with the chances for Congressional stimulus withering ahead of a contentious U.S. election. Global equities are on course for the first monthly slide since March, with the MSCI gauge down about 6% in September.“Markets are digesting and grappling with this idea that the growth expectations that investors have might not materialize,” said Lauren Goodwin, economist and multi-asset portfolio strategist at New York Life Investments. “As the fiscal impulse in the U.S. starts to wane, some of these expectations for a slow and steady recovery are shaken.”Meantime, President Donald Trump said he would not commit to a peaceful transfer of power if a tally of ballots shows Democrat Joe Biden wins the November election.In South Korea, the military said it has confirmed through various intelligence that North Korea shot and cremated the body of a missing South Korean fisheries ministry employee.Elsewhere, crude oil retreated, while gold edged down.These are some events to watch this week:Powell and Treasury Secretary Steven Mnuchin will testify before a Senate committee on the economic response to the pandemic on Thursday.U.S. initial jobless claims are due Thursday.Here are some of the main moves in markets:StocksS&P 500 futures slid 0.3% as of 6:55 a.m. in London. The gauge declined 2.4% on Wednesday.Japan’s Topix index dropped 1%.Hong Kong’s Hang Seng fell 2%.Shanghai Composite dropped 1.7%.South Korea’s Kospi lost 2.6%.Euro Stoxx 50 futures were 1.4% lower.CurrenciesThe Bloomberg Dollar Spot Index gained 0.2%.The euro bought $1.1655, little changed.The yen was at 105.38 per dollar.The offshore yuan was steady at 6.8285 per dollar.BondsThe yield on 10-year Treasuries remained at 0.67%.Australia’s 10-year yield was steady at 0.81%.CommoditiesWest Texas Intermediate crude fell 0.7% to $39.63 a barrel.Gold lost 0.7% to $1,850.01 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
