U.S. Stock-Index Futures Decline on Renewed Concerns Over China

U.S. stock-index futures dropped, signaling equities will retreat after yesterday’s rally, on renewed concern over the Chinese economy and falling oil prices.

Fitbit Inc. tumbled 17 percent in pre-market New York trading after its revenue and profit forecasts for the current quarter fell short of analysts’ expectations. SolarCity Corp. declined 1.8 percent after JPMorgan Chase & Co. cut its rating to neutral from overweight. Twitter Inc. advanced 1.2 percent after Raymond James and Associates raised its recommendation to outperform, similar to buy, from market perform.

Standard & Poor’s 500 Index contracts expiring in March slid 0.4 percent to 1,929.25 at 9:55 a.m. in London. The equity benchmark rose to a six-week high yesterday as oil rebounded. The index is still down 8.7 percent from a May record and 4.8 percent lower this year on concern that weakness in China will damp global growth, and that lenders will suffer as some energy producers struggle to stay solvent amid low oil prices. Futures on the Dow Jones Industrial Average lost 61 points, or 0.4 percent, to 16,478 today.

A global stock rally is faltering today after the People’s Bank of China lowered its daily reference rate by the most in six weeks, reigniting concerns over the health of the world’s second-biggest economy. This anxiety had eased in the past week, helping the S&P 500 cut its 2016 decline in half in six trading sessions.

Source: Bloomberg

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European Stock-Index Futures Drop With Crude; Yen, Gold Advance

European equity-index futures signaled a return to the selloff that drove stocks to a two-year low this week. Hong Kong shares slumped with oil as investors shunned risk, while the yen and gold gained.

Futures on the Stoxx Euro Stoxx 50 Index slid 1.5 percent and Standard & Poor’s 500 Index contracts dropped. The Hang Seng Index headed for its worst start to a lunar new year since 1994 as trading resumed after a three-day break. The yen climbed for a fourth day as a Bloomberg gauge of dollar strength traded near its lowest level since November. Gold rose beyond $ 1,200 an ounce, while U.S. oil traded at $ 27 a barrel.

Signals by central banks from Europe to Japan that additional stimulus is at the ready is failing to ease investor concern over the creditworthiness of European banks and the continued selloff in crude oil. Societe Generale SA, France’s second-largest bank by market value, posted fourth-quarter profit that missed analysts estimates. Federal Reserve Chair Janet Yellen suggested that the central bank might delay, but not abandon, planned interest-rate increases in response to recent turmoil in financial markets.

Source: Bloomberg

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