S&P 500 (^GSPC)
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Stock market news live updates: Stock futures trade lower, giving back gains after tech earnings
Stock futures traded lower Thursday evening to give back some gains after the three major indices rallied during the regular session.
- Bloomberg
Stocks Drop With Futures as Tech Worries Weigh: Markets Wrap
(Bloomberg) -- Fresh concerns about the outlook for technology giants fueled a decline in stocks and U.S. equity-index futures on Friday. The yen strengthened.European shares opened lower, with miners among the biggest losers after Glencore Plc, the world’s biggest shipper of coal, reduced its production target for the third time this year. Nasdaq 100 contracts fell nearly 2% following a string of mixed reports from the likes of Amazon.com Inc. and Apple Inc. Shares tumbled across Asia, with stocks in South Korea and Japan faring worst.The S&P 500 had earlier bounced back a day after its biggest rout in four months, with investors encouraged by better-than-forecast economic data even as they kept a wary eye on growing coronavirus infections. Crude oil edged lower.Weakness in technology shares is adding to volatility that’s likely to remain elevated heading into next week’s U.S. election. Global equities are on course for the worst weekly decline since March as lockdown measures in some countries and the lack of an agreement on U.S. stimulus dent sentiment. New U.S. coronavirus cases topped 89,000, setting a daily record.“There is going to be more volatility ahead of the election,” Quincy Krosby, chief market strategist at Prudential Financial Inc., said on Bloomberg TV. “Over the weekend folks are going to be focused on Pennsylvania to see whether or not Biden is gaining there. The concern is if he gains a little bit, that may be one where you could actually look to a contested election.”Here are the main market moves:StocksFutures on the S&P 500 Index fell 1.4% as of 8:16 a.m. London time.The Stoxx Europe 600 Index decreased 0.5%.The MSCI Asia Pacific Index sank 1.3%.The MSCI Emerging Market Index dipped 1.1%.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro gained 0.1% to $1.1681.The British pound was little changed at $1.2933.The onshore yuan strengthened 0.3% to 6.697 per dollar.The Japanese yen strengthened 0.3% to 104.33 per dollar.BondsThe yield on 10-year Treasuries decreased less than one basis point to 0.82%.The yield on two-year Treasuries gained less than one basis point to 0.15%.Germany’s 10-year yield advanced two basis points to -0.62%.Britain’s 10-year yield gained two basis points to 0.241%.Japan’s 10-year yield jumped one basis point to 0.042%.CommoditiesWest Texas Intermediate crude decreased 0.1% to $36.14 a barrel.Brent crude dipped 0.2% to $37.56 a barrel.Gold strengthened 0.3% to $1,873.97 an ounce.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.
- Bloomberg
China Fintech Firm Lufax Set to Raise $2.4 Billion in U.S. IPO
(Bloomberg) -- Chinese financial technology firm Lufax Holding Ltd. raised $2.4 billion in a U.S. initial public offering priced at the top of an indicative range, according to people familiar with the matter, just days after U.S. stocks suffered their biggest drop since June.The company sold 175 million American depositary shares for $13.50 each, said the people, who asked not to be identified because the information is private. The amount raised makes Lufax’s offering one of the biggest IPOs by a Chinese company in the U.S. this year. A representative for the company declined to comment, citing the IPO quiet period.Lufax, which is backed by China’s largest insurer by market value, Ping An Insurance Group Co., marketed its American depositary shares for $11.50 to $13.50 each. Two ADS represent one ordinary share.The IPO coincides with a week of significant volatility. The S&P 500 Index suffered its worst rout in four months on Wednesday amid worries about the economic hit of the pandemic. On Thursday U.S. stocks bounced back, with investors encouraged by better-than-forecast economic data. The S&P 500 gained 1.2%, the most since Oct. 12.Lufax, which was once among China’s largest peer-to-peer lenders, has morphed into a financial giant offering wealth management and retail lending services. At $13.50 a share, it would be valued at $33 billion based on the outstanding shares listed in its prospectus.Chinese authorities launched a sweeping crackdown on the unruly P2P sector three years ago, forcing the company to transform its business. Its assets under management dropped by 6.1% in 2019 due to “asset portfolio adjustment and restrictions on consumer finance products,” Ping An said in February. Wealth management transaction volumes fell by almost 30%.Lufax is going public at the same time as fintech behemoth Ant Group Co., which is set to raise $34.5 billion in listings in Shanghai and Hong Kong, making it the world’s biggest IPO on record.The company plans to use the funds from the IPO for purposes which may include investment in product development, sales and marketing activities, technology infrastructure, acquisitions or investments, according to the prospectus.Goldman Sachs Group Inc., Bank of America Corp., UBS Group AG, HSBC Holdings Plc and China PA Securities Co. are leading Lufax’s offering. Its shares are expected to begin trading Friday on the New York Stock Exchange under the symbol LU.(Updates with company decline to comment in second paragraph.)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.
