Global stocks decline after Trump move, oil drops

Sydney - Stocks declined as traders weighed the impact of Donald Trump’s order halting some immigration and ahead of central bank decisions from the US and Japan. Crude fell below $53 a barrel.

Equities in Europe, Japan and Australia dropped with US stock futures, while markets in Hong Kong, China, Malaysia, Korea, Singapore, Taiwan and Vietnam were among those closed for holidays. The dollar erased earlier declines and oil retreated for a second day.

Trump’s executive order halting immigration from seven predominantly Muslim nations drew criticism from world governments and some of the largest companies, bringing the geopolitical and international trade risks surrounding the new US president into sharper focus.

His order was curbed by a Boston federal judge, who directed customs officials at the city’s Logan International Airport to allow passengers from those countries with valid visas to deplane there and go on their way.

The Federal Reserve holds a policy meeting on February 1 and the Bank of Japan convenes this week. Neither is expected to change lending rates, though the Fed’s statement will be parsed for any reading on Trump’s impact on the world’s largest economy.

Here’s what’s coming up this week:

Apple, Facebook and Amazon.com are among the major US companies due to report results. Of the 219 S&P 500 names to report so far, 73% have topped profit estimates. Japan will see earnings from heavy hitters including Sony and Honda Motor.

The first US jobs report of the year is due on February 3, while China manufacturing and services industry data are scheduled for February 1.

Stocks

The Stoxx Europe 600 Index lost 0.6% at 8:22 in London in a second day of declines. The S&P 500 futures dropped 0.2% after the underlying gauge gained 1% last week. Japan’s Topix index slid 0.4%, led by a drop in banks and exporters.

The gauge advanced 1% last week, trading near the highest since December 2015. Australia’s S&P/ASX 200 Index lost 0.9%, dragged down by technology shares.  

Currencies

The Bloomberg Dollar Spot Index was little changed after erasing losses of as much as 0.4%. The pound weakened 0.1%, extending a two-day decline. The yen climbed 0.2% to 114.89 per dollar. The Australian dollar and the kiwi were little changed.

Commodities

Oil futures dropped 0.2%. Crude earlier slid 0.6 percent to $52.88 a barrel amid speculation increases in US drilling will boost output and curtail the effects of supply cuts made by Opec and other producers.

Gold lost 0.1% to $1 189.9 after rising as much as 0.4% earlier.  

Bonds

US Treasury 10-year yields rose two basis point to 2.489%. The yield on 10-year Australian government bonds slid 6 basis points to 2.72%.