Europe stocks up, U.S. futures down amid value hunt - BNN Bloomberg

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European stocks rose, while U.S. index futures and Asian equities fell, as investors hunted for pockets of value amid hawkish central banks, disappointing earnings and further power consolidation in China.

The dollar gained before data on the Federal Reserve's preferred inflation measure. The Stoxx Europe 600 Index climbed for a second day. Contracts on the S&P 500 and Nasdaq 100 slipped at least 0.2 per cent each. Chinese technology stocks led a selloff in Asia amid signs price wars and cash burns are undermining profits. The yen drifted lower after the nominee for the Bank of Japan's top job signaled continuity of loose monetary policy.

“Rising tensions certainly increase the safe haven flows to the U.S. Treasuries and interfere with the hawkish Fed pricing,” Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a note. A gauge of Chinese technology stocks listed in Hong Kong tumbled 3.3 per cent. NetEase Inc. slumped after a profit miss, while Alibaba Group Holding Ltd. fell as analysts remained cautious about its sales growth prospect. Meanwhile, Chinese President Xi Jinping was set to bring decision-making of the financial system further under his control with the revival of a powerful committee.

German yields slipped after gross domestic product in Europe's biggest economy contracted 0.4 per cent in the fourth quarter, more than expected.

 

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