(Bloomberg) -- European stocks fell on Wednesday while U.S. equity futures edged lower as the rebound in global shares struggled to maintain its momentum. Oil slipped, while Treasuries advanced with German bonds.
Contracts on the S&P 500, Dow and Nasdaq all turned lower along with the Stoxx 600, as automakers and miners weighed on the European benchmark. The only bright spot was Asia, where a regional equities gauge headed for its biggest one-day increase in six weeks. Mainland China led gains after data showing China's economy lost steam lifted expectations that Beijing will boost stimulus. Australia's dollar sank as China reported industrial output, retail sales and investment all slowed last month -- underscoring the fragility of the world's second-largest economy as it girds for an intensified face-off with the U.S. over trade.
Treasury yields remained near the lowest level since March, with investors still reeling from the breakdown in trade negotiations in the past week. Yields on 10-year German bunds slipped to the lowest since 2016.
Signs of rekindled appetite for risky assets seem to be ebbing as traders remain on edge. The White House is preparing tariffs on the remaining $300 billion of Chinese imports, and economists warn the new penalties will eventually weigh heavily on the American economy. President Donald Trump is preparing to meet his Chinese counterpart, Xi Jinping, at next month's G-20 summit, an encounter that could prove pivotal in the deepening clash over trade.
"It's just too early to tell if this is a buy, on slightly oversold conditions, or if it's the start of stabilization," Gina Martin Adams, chief equity strategist at Bloomberg Intelligence, told Bloomberg TV in Hong Kong. "Our working thesis is that we're going to be in for a period of volatility for most the next month as we await the G-20 meeting."
Elsewhere, oil fell as an industry report signaling a jump in U.S. stockpiles eased concerns over a supply crunch, after a drone attack in Saudi Arabia had highlighted the vulnerability of the country's energy infrastructure.
Here are some notable events coming up this week:
And here are the main market moves:
--With assistance from Charlotte Ryan and Adam Haigh.
To contact the reporter on this story: Todd White in Madrid at email@example.com
To contact the editors responsible for this story: Christopher Anstey at firstname.lastname@example.org, Yakob Peterseil
For more articles like this, please visit us at bloomberg.com
©2019 Bloomberg L.P.