Before Weekend, Stocks Decline as Traders Reduce Risk – Europe Market Wrap
Stocks edged lower as investors reduced risk ahead of the weekend, with the fragile US-Iran truce keeping geopolitical uncertainty in focus despite a recent rebound in equities. S&P 500 futures slipped 0.1% after chipmakers helped lift the benchmark to its highest level since mid-June, while Europe’s Stoxx 600 was little changed and remained on track for its first weekly decline in five weeks.
SK Hynix fell 0.3% in Seoul ahead of its US market debut, with investors watching the listing closely in an otherwise quiet session that lacks major economic data or scheduled appearances from central bank officials. The company raised $26.5B through its American depositary receipt offering, with when-issued trading set to begin on the Nasdaq Global Select Market.
Brent crude fell 0.4% to around $76/bbl after a volatile week, as US-Iran talks continued despite recent fighting that sharply reduced shipping traffic through the Strait of Hormuz. While oil eased, the risk of further escalation continued to support a cautious tone heading into the weekend.
The Dollar declined 0.1%, extending its losing streak to a third session, while Treasuries rallied further with the 10Y yield falling 2 bps to 4.53%. The Yen outperformed major peers after Japanese Finance Minister Katayama said the government wants pension funds to increase investment in domestic assets.
