(Bloomberg) -- Asian stock futures indicate a lower open after U.S. equities snapped a six-day rally on a disappointing result from Walmart (NYSE:WMT) Inc. and as Treasuries fell amid massive debt issuance. The dollar advanced.
Futures on equity indexes in Japan and Australia declined. The S&P 500 Index slipped below its average price for the past 50 days. Walmart sank the most since 1988. The U.S. Treasury on Tuesday sold $179 billion of securities, with yields on two-year notes and three- and six-month bills climbing to levels unseen since 2008. The dollar rose to the highest in a year against major peers.
The Treasury’s $258 billion of auctions slated for this week comes amid surging rates that gave impetus to one of the steepest equity selloffs in years two weeks ago. While investors seem to have adjusted to 10-year rates at a four-year high for now, the deluge of supply could push yields higher, weakening the case for owning stocks at elevated valuations.
Investors will also get to parse minutes this week from the most recent meetings of both the Federal Reserve and the European Central Bank.
Elsewhere, oil in New York rose to a two-week high amid signs of expanding worldwide demand for the growing abundance of U.S. oil. Bitcoin broke above $11,500, almost double its intraday low from just two weeks ago.
Terminal users can read more in our markets blog.
Here are some key events scheduled for this week:
- The Federal Reserve will release minutes on Wednesday of its Jan. 30-31 meeting, Janet Yellen’s last as chair, where officials kept the rate unchanged.
- Fed policy makers speaking this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic. Cleveland Fed President Loretta Mester is among speakers at the U.S. Monetary Policy Forum in New York City.
- Companies announcing earnings this week include Glencore (LON:GLEN), Woolworths, Barclays (LON:BARC) and Royal Bank of Scotland (LON:RBS).
- Chinese markets reopen on Thursday after holidays.
These are the main moves in markets:
Stocks
- Futures on Japan’s Nikkei 225 Stock Average dropped 0.4 percent in Singapore.
- Australia’s S&P/200 Index dropped 0.5 percent.
- The S&P 500 fell 0.6 percent.
- The Stoxx Europe 600 Index rose 0.6 percent.
- The MSCI Emerging Market Index declined 0.5 percent, the biggest decline in more than a week.
Currencies
- The Bloomberg Dollar Spot Index increased 0.6 percent to the highest in a week.
- The euro sank 0.6 percent to $1.2337, the lowest in more than a week.
- The Japanese yen sank 0.7 percent to 107.32 per dollar.
Bonds
- The yield on 10-year Treasuries increased one basis point to 2.89 percent.
- The 2-year yield rose three basis points to 2.22 percent, the highest since 2008.
- Australia’s 10-year yield was steady at 2.90 percent.
Commodities
- West Texas Intermediate crude rose less than 0.4 percent to settle at $61.90 a barrel, the highest in two weeks.
- Gold was little changed at $1,329.30 an ounce after dropping 1.3 percent.
