Markets lower as US dollar rose

On Wednesday European stocks followed many of their Asian peers lower as the earnings season got into full swing, while the U.S. dollar rose and West Texas oil extended Tuesday’s drop.

The Stoxx Europe 600 Index retreated, finding little support from the weaker euro following declines in a number of Asian markets and a pullback in U.S. equities yesterday. Chinese shares bucked the trend, climbing to a fresh record in Hong Kong. The euro was weaker after some verbal intervention from the ECB, while the yen and Swiss franc were among the other major currencies falling against the greenback. Treasuries declined amid Congressional talks to avert a government shutdown Friday.

Traders appear to be taking a pause, perhaps questioning the pace of gains in equity markets since the start of 2018. After sales updates from many retailers, the earnings season is ramping up, with money managers eager for good news to help maintain the rally. Meanwhile bond investors are mulling the potential for monetary policy in the U.S. to tighten faster than expected, and settling their nerves after last week’s selloff. The notion of a bear market doesn’t seem to have endured — the yield curve steepening barely lasted a day.

Elsewhere, West Texas oil slipped before U.S. government data forecast to show crude stockpiles fell for a ninth week. Bitcoin’s selloff deepened.

The Stoxx Europe 600 Index decreased 0.1 percent as of 10:57 a.m. London time. The MSCI All-Country World Index declined less than 0.05 percent. The U.K.’s FTSE 100 Index decreased 0.2 percent to the lowest in more than a week on the largest dip in more than a week. Germany’s DAX Index sank 0.2 percent. The MSCI Emerging Market Index rose 0.1 percent to the highest in almost 10 years. Futures on the S&P 500 Index gained 0.3 percent to the highest on record.