Europe Stocks Slump on Travel Rules; Dollar Steady: Markets Wrap

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(Bloomberg) — European stocks fell on Friday as fresh quarantine rules and a record drop in second-quarter employment weighed on recovery hopes. Treasury yields declined after rising for five days and the dollar drifted.

The Stoxx Europe 600 Index sank after Britain added France, the Netherlands and Malta to its list of countries from which people arriving have to quarantine for 14 days. EasyJet Plc fell as much as 8% and British Airways owner IAG SA by as much as 7%.

Futures on the main U.S. equity benchmarks slipped ahead of retail sales data for July. Gold edged lower and oil headed for a second weekly advance, while the euro remained on track for its eighth straight week of gains versus the greenback.

Traders continue to bank on further fiscal stimulus to help the nascent recovery, after U.S. and Asian stocks erased most of their pandemic-related losses. Retail sales figures on Friday will offer clues about the health of the consumer recovery following a report that showed weekly jobless claims in the U.S. dropped below 1 million for the first time since March.

On the virus front, Joe Biden said U.S. governors should require masks for the next three months, while New Zealand recorded 12 new confirmed local cases of the coronavirus. Germany recorded the highest number of new cases in more than three months, as infections also rose in France, Greece and Spain.

Here are some key events coming up:

U.S.-China trade talks are expected in coming days.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index declined 0.4% as of 10:24 a.m. London time.The Stoxx Europe 600 Index sank 1.7%.The MSCI Asia Pacific Index fell 0.1%.The MSCI Emerging Market Index fell 0.3%.

Currencies

The Bloomberg Dollar Spot Index was little changed.The euro fell 0.2% to $1.1796.The British pound was little changed at $1.3068.The onshore yuan weakened 0.1% to 6.953 per dollar.The Japanese yen strengthened 0.2% to 106.68 per dollar.

Bonds

The yield on 10-year Treasuries fell three basis points to 0.69%.The yield on two-year Treasuries decreased one basis point to 0.16%.Germany’s 10-year yield declined one basis point to -0.42%.Japan’s 10-year yield rose two basis points to 0.051%.Britain’s 10-year yield decreased less than one basis point to 0.24%.

Commodities

West Texas Intermediate crude declined 0.9% to $41.86 a barrel.Brent crude dipped 0.9% to $44.56 a barrel.Gold weakened 0.2% to $1,949.81 an ounce.

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