(Bloomberg) — U.S. futures and European stocks slumped as investors worried that global equity markets have run too far, too fast. Treasuries advanced with gold and the yen.Contracts on the three main American equity gauges all signaled declines at the open in Wall Street. The dollar rose against a basket of currencies for the first time in nine days. Banks and auto shares dragged the Stoxx Europe 600 Index lower. Government bonds in the European periphery slipped. A gauge of European junk-grade credit risk increased the most since mid-May. After a record-breaking rally, there are growing concerns that prices have overshot the economic recovery. The World Bank warned the global economy will contract the most since World War II this year, reducing incomes and sending millions of people into poverty in emerging and developing nations.“There are a lot of unknowns that we are dealing with despite the fact that normalizations of economic activities are still on track,” Frank Tsui, a senior fund manager at Value Partners, said on Bloomberg TV. “There are still a lot of unknown factors.”S&P Erases Loss and Ed Yardeni Doubts It Was Ever a Bear Market.What to watch this week:The Fed’s next policy decision is Wednesday. Officials are expected to leave rates above zero.OECD releases its economic outlook Wednesday, a twice-yearly analysis of the economic prospects of member countriesEuro-area finance ministers meet Thursday to discuss the EU’s recovery package and Eurogroup presidency succession.These are some of the main moves in markets:StocksFutures on the S&P 500 Index slipped 0.8% as of 10:30 a.m. London time.Nasdaq 100 Index futures declined 0.5%.The Stoxx Europe 600 Index fell 1.2%.The MSCI Asia Pacific Index rose 0.5%.CurrenciesThe Bloomberg Dollar Spot Index climbed 0.4%.The euro declined 0.3% to $1.1265.The British pound dipped 0.6% to $1.2644.The Japanese yen strengthened 0.5% to 107.88 per dollar.BondsThe yield on 10-year Treasuries sank five basis points to 0.82%.The yield on 30-year Treasuries decreased six basis points to 1.58%.Germany’s 10-year yield fell two basis points to -0.34%.Britain’s 10-year yield declined one basis point to 0.322%.CommoditiesBrent crude decreased 1.3% to $40.25 a barrel.Gold strengthened 0.5% to $1,707.43 an ounce.Iron ore fell 1.3% to $100.99 per metric ton.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.
