U.S. stocks, futures drop with earnings, rates in focus
BNN Bloomberg
European stocks and U.S. equity futures dropped following mixed corporate earnings and as investors studied the latest assessment on the U.S. economy for clues on the path for interest rates.
Autos led declines in the Stoxx Europe 600 index as Renault SA fell the most in almost five months, with concerns over pricing pressure outweighing the French carmaker's first-quarter sales beat. Germany's DAX underperformed as other auto- and partsmakers fell. L'Oreal SA gained after the cosmetics maker reported strong demand. Contracts for the Nasdaq 100 retreated by more than one per cent. A region-wide index of Asian stocks edged lower.
The Federal Reserve's monthly Beige Book survey released on Wednesday showed the U.S. economy “stalled,” with narrower access to credit. Federal Reserve Bank of New York President John Williams said the recent trend of slowing inflation continues but that price gains remain too high. Trader bets continue to lean toward a rate hike next month.
A measure of dollar strength was steady, while Treasury yields dropped.
