(July 19 Bloomberg) European stocks fell from a three-week high and U.S. equity-index futures dropped as weaker-than-estimated company earnings revived concern over prospects for economic growth. Demand for haven assets sent U.S. Treasuries and gold higher.
The Stoxx Europe 600 Index fell the most in two weeks, led by paint maker Akzo Nobel NV, while futures signaled the S&P 500 Index will retreat from an all-time high. The Australian and New Zealand dollars sank as speculation mounted that their central banks will cut interest rates as soon as next month. Treasuries gained as Morgan Stanley predicted the yield on 10-year debt will sink to 1 percent in early next year.
While global equities have recovered losses triggered by Britain's vote last month to leave the European Union amid speculation of more stimulus measures, some earnings have raised the specter the rally may have come too far, too fast. The International Monetary Fund is due to update its projections for world growth on Tuesday and Managing Director Christine Lagarde warned last week that estimates may be cut. Investors will be looking at results from Goldman Sachs Group Inc. and Microsoft Corp after Netflix Inc. reported subscriber growth slumped to a three-year low.
Click on the link below to see the full story from Bloomberg: (by James Regan and Kelly Gilblom)