(Bloomberg) — U.S. and European futures retreated and the dollar advanced with Treasuries as deteriorating Sino-American ties cast a cloud over the recent rally in risk assets.Asian shares also dipped, in thin trading Thursday. China’s offshore yuan held steady despite the greenback’s gains, on the eve of the biggest Chinese political gathering of the year. The U.S. Senate passed a bill that could bar some Chinese companies from listing on American exchanges, while President Donald Trump tweeted criticism of China’s leadership. Elsewhere, crude oil saw modest gains.Investors have been whipsawed by conflicting news regarding a possible vaccine for the virus, and continued to mull efforts from many governments around the world to ease lockdowns. U.S. central bankers saw the pandemic posing a severe economic threat and were also concerned by the risks to financial stability, minutes of the April 28-29 Federal Open Market Committee meeting showed.Meanwhile, the Senate overwhelmingly approved legislation Wednesday that could lead to Chinese companies such as Alibaba Group Holding Ltd. and Baidu Inc. being barred from listing on U.S. stock exchanges amid increasingly tense relations between the world’s two largest economies.“Markets may be pricing in far too much complacency as the U.S.-China ‘phase one’ trade deal could be at risk,” said Stephen Innes, chief global market strategist at AxiCorp. “The pandemic and resulting acute economic downturn have made China’s trade commitment to the U.S. much more challenging to fulfill.”These are the main moves in markets:StocksFutures on the S&P 500 dropped 0.6% as of 7:08 a.m. in London. The gauge rose 1.7% on Wednesday.Euro Stoxx 50 futures retreated 1.1%.MSCI Asia Pacific Index fell 0.3%.CurrenciesThe yen fell 0.2% to 107.71 per dollar.The offshore yuan was little changed at 7.1137 per dollar.The euro bought $1.0961, down 0.2%.The Bloomberg Dollar Spot Index rose 0.3%.The pound was down 0.4% at $1.2195.BondsThe yield on 10-year Treasuries slid two basis points to 0.66%.Australian 10-year yields dipped three basis points to 0.92%.CommoditiesWest Texas Intermediate crude rose 2.8% to $34.40 barrel.Gold was at $1,738 an ounce, down 0.6%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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