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Stocks Fall as Trade Concerns Weigh; Dollar Drops: Markets Wrap

Randall Jensen and Claire Ballentine

(Bloomberg) -- U.S. stocks fell amid concern that the U.S. and China are struggling to get an initial trade deal done. The dollar declined.

The S&P 500 headed for its first fall in four sessions in trading more than 20% below its average of the last 100 days. President Donald Trump’s tariff comments over the weekend sparked the decline after trade optimism sent stocks to multiple records last week.

In company news, Qualcomm Inc. slid after a downgrade, while Walgreens Boots Alliance Inc. surged following a Bloomberg News report that said KKR & Co. formally approached the company about a deal to take it private. Boeing Co. jumped after saying it may resume 737 Max deliveries next month, which helped push the Dow Jones Industrial Average higher.

The greenback fell for the first time in six days. The pound rallied as Prime Minister Boris Johnson’s efforts to leave the European Union got a boost from the Brexit Party. The Treasury market is closed for the Veterans Day holiday.

“I think markets have been skittish waiting for any concrete information about the trade talks,” said Matt Forester, chief investment officer at BNY Mellon’s Lockwood Advisors. “We will need more concrete information about the structure and timing of any kind of final trade arrangement, but in the meantime we are operating on scraps of information."

Investors are on watch for any headlines that could point to a first-phase trade deal between the U.S. and China after mixed messages from the White House and delayed meetings have heightened concerns that negotiations are stumbling. At the same time, data showed Chinese factory-gate prices dropping for a fourth month, increasing worries about the effect of the trade war on the world’s second-biggest economy.

Elsewhere, emerging market shares fell the most in more than two months as stocks tumbled in Hong Kong amid violent clashes after a protester was shot by police. Crude oil edged lower.

Here are some key events coming up this week:

Earnings include Tencent, Nissan Motor, Japan Post Bank and Mitsubishi UFJ.New Zealand’s policy decision is due Wednesday, with market pricing tilting in favor of an interest-rate cut.Fed Chairman Jerome Powell addresses the Joint Economic Committee of Congress, in Washington Wednesday. Minneapolis Fed President Neel Kashkari speaks in La Crosse, Wisconsin.Thursday brings China retail sales and industrial production data.U.S. retail sales on Friday are forecast to rebound in October after unexpectedly falling the prior month.

These are the main moves in markets:

Stocks

The S&P 500 Index fell 0.2% as of 2:24 p.m. New York time.The Stoxx Europe 600 Index was little changed.The MSCI Emerging Market Index fell 1.1%, the most since Aug. 26.

Currencies

The Bloomberg Dollar Spot Index declined 0.1%.The euro advanced 0.2% to $1.1038.The British pound jumped 0.6% to $1.2853.The Japanese yen increased 0.2% to 109.02 per dollar.

Bonds

Germany’s 10-year yield was little changed at -0.26%.Britain’s 10-year yield was steady at 0.789%.Japan’s 10-year yield declined one basis point to -0.063%.

Commodities

West Texas Intermediate crude fell 0.2% at $57.10 a barrel.Gold fell 0.2% to $1,456.79 an ounce.

--With assistance from Yakob Peterseil.

To contact the reporters on this story: Randall Jensen in New York at rjensen18@bloomberg.net;Claire Ballentine in New York at cballentine@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Robert Brand

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