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(Bloomberg) -- The equity selloff that moved from Asia to Europe looks set to continue, with U.S. stock futures joining the broad retreat. European bonds turned positive as the world’s most powerful central bankers spoke in Frankfurt, while the dollar weakened and the euro appreciated on German growth data.

The single currency climbed the most in two months, helping extend the Stoxx Europe 600 Index’s slide into a sixth day. Mining and energy companies led the drop, with commodity prices also falling in the wake of data showing China’s economy moderating. That weighed on Asian equity gauges, though the Nikkei closed little changed after dropping for four days. The yield on China’s 10-year debt briefly breached 4 percent for the first time in more than three years. The dollar broke out of a tight range to weaken as traders continue to weigh the chances of a meaningful U.S. tax overhaul.

Markets have been under pressure in the past week after a global rally took U.S. stocks to records and Japan’s to the highest in a quarter century. Investors on Tuesday focused on a European Central Bank conference featuring Mario Draghi, Janet Yellen, Mark Carney and Haruhiko Kuroda, who commented about how their institutions communicate and guide markets. But there were few surprises, and attention will likely now shift to anticipating the U.S. inflation and retail sales numbers that could influence Federal Reserve interest-rate hike odds.

Elsewhere, Venezuela was declared in default by S&P Global Ratings after missing two interest payments on its debt. Indian sovereign bonds fell for a third day, with the benchmark 10-year yield reaching the highest since September 2016, on accelerating consumer inflation data. Bitcoin edged higher after falling for three days.

Terminal users can read more in our Markets Live blog.

Here are some key events investors are watching this week:

  • BOE officials address the bank’s future on Thursday, while Draghi speaks a second time Friday. 
  • A string of Fed appearances may further illuminate the FOMC’s commitment to a December hike.

These are the main moves in markets:


  • The Stoxx Europe 600 Index sank 0.5 percent as of 8:45 a.m. New York time, hitting the lowest in seven weeks with its sixth consecutive decline.
  • The MSCI All-Country World Index gained less than 0.05 percent.
  • The U.K.’s FTSE 100 Index climbed 0.2 percent.
  • Germany’s DAX Index sank 0.2 percent to the lowest in almost three weeks.
  • The MSCI Emerging Market Index rose less than 0.05 percent, the largest advance in a week.
  • Futures on the S&P 500 Index dipped 0.2 percent to the lowest in more than a week.


  • The Bloomberg Dollar Spot Index decreased 0.4 percent to the lowest in almost three weeks on the largest dip in almost 10 weeks.
  • The euro climbed 0.8 percent to $1.1761, reaching the strongest in almost three weeks on its fifth consecutive advance and the biggest increase in almost 10 weeks.
  • The British pound declined 0.1 percent to $1.3108, the weakest in more than a week.


  • The yield on 10-year Treasuries fell one basis point to 2.39 percent, the first retreat in a week and the largest drop in more than a week.
  • Germany’s 10-year yield declined one basis point to 0.41 percent, the biggest drop in more than a week.
  • Britain’s 10-year yield declined one basis point to 1.319 percent.


  • Gold fell 0.4 percent to $1,273.76 an ounce, the weakest in more than a week.
  • West Texas Intermediate crude fell 0.5 percent to $56.47 a barrel, the lowest in more than a week.


  • The Nikkei 225 Stock Average closed little changed, while the Topix index lost 0.3 percent in a fourth day of losses.  
  • Hong Kong’s Hang Seng Index edged lower, while the Shanghai Composite slid 0.5 percent.
  • Australia’s S&P/ASX 200 index dropped 0.9 percent and the Kospi index in Seoul slid 0.2 percent.  
  • The MSCI Asia Pacific Index fell 0.2 percent in a third day of losses.
  • The Japanese yen rose 0.1 percent to 113.47 per dollar, the strongest in more than two weeks.

--With assistance from Adam Haigh

To contact the reporter on this story: Samuel Potter in London at spotter33@bloomberg.net.

To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Todd White

©2017 Bloomberg L.P.

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