Stocks Dip as Treasury Yields Drop to 19-Month Low: Markets Wrap.

Stocks Dip as Treasury Yields Drop to 19-Month Low: Markets Wrap

(Bloomberg) -- European stocks and U.S. equity futures fell as traders returned from U.S. and U.K. holidays and took a cautious outlook. The dollar advanced with Treasuries.

The Stoxx Europe 600 index declined, led by banks and chemicals. Earlier in Asia, shares climbed in Japan and China on lower-than-usual trading volume after markets were shut Monday in the U.S. and U.K. for holidays. Ten-year Treasury yields fell to their lowest levels since October 2017 as the securities returned to trading, hours after President Donald Trump declared that the U.S. was “not ready” to reach a trade deal with China. The offshore yuan weakened. The pound edged lower and U.K. stocks climbed as traders kept watch on the race to choose Britain’s next prime minister.

Escalating tensions over the U.S.-China trade war has weighed on investor sentiment in May after talks stalled, pushing global stocks toward their first monthly decline of the year. Trump said Monday during a state visit to Japan that American tariffs on goods from China “could go up very, very substantially, very easily,” while over the weekend the Asian nation pushed back at the perception that the levies were hurting its economy.

By Namitha Jagadeesh.

Full story at Yahoo News.