(Bloomberg) — Asian stocks dipped Thursday as investors weighed earnings reports from U.S. banks and fading chances of an American stimulus deal before next month’s election. The dollar steadied after an overnight decline.

Shares slipped in much of the region, while Australian equities outperformed. S&P 500 contracts fluctuated after the gauge retreated Wednesday. Wells Fargo & Co. and Bank of America Corp. both fell after disappointing investors. Goldman Sachs Group Inc. outperformed after earnings beat expectations.

Elsewhere, Australian bond yields and the local dollar dropped, and stocks pushed higher, after the Reserve Bank of Australia governor said rate cuts were still a possibility. The pound steadied as investors awaited more news on Brexit negotiations. The baht dipped as Thailand declared a state of emergency in Bangkok to crack down on anti-government protesters.



chart, histogram: The value of China's stock markets is at an all-time high


© Bloomberg
The value of China’s stock markets is at an all-time high

Meantime, China’s central bank added medium-term funding to the financial system as it guides the economy through the pandemic.

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In the U.S., Treasury Secretary Steven Mnuchin said getting a stimulus agreement before the election would be difficult, in remarks after another call with House Speaker Nancy Pelosi. While he hoped for bipartisan support for Senate Majority Leader Mitch McConnell’s latest idea — a vote on a narrow bill next week to help small businesses — Democratic leaders have no appetite for piecemeal measures now.

“This has been an ongoing drama,” said Paul Nolte, portfolio manager at Kingsview Investment Management. “The latest twist I heard is nothing is going to get done until the election. That’s why I think you’re getting the market selling off a little bit.”

Europe’s leaders intensified efforts to stem a resurgent coronavirus outbreak across the continent with France announcing stricter measures, Germany warning of economic risks and London set to tighten restrictions.

Here are some key events coming up:

Morgan Stanley’s earnings are scheduled for Thursday.U.K. Prime Minister Boris Johnson set a deadline of Thursday to thrash out the outline of a European Union trade deal.European Central Bank President Christine Lagarde leads off the virtual annual meetings of the International Monetary Fund and the World Bank Group. Through Oct. 18.

These are some of the main moves in markets:

Stocks

S&P 500 futures slid 0.2% as of 10:35 a.m. in Tokyo. The index dipped 0.7% on Wednesday.Japan’s Topix index fell 0.3%.Hong Kong’s Hang Seng slid 0.6%.Shanghai Composite added 0.2%.South Korea’s Kospi dropped 0.7%.Australia’s S&P/ASX 200 Index rose 0.7%.Euro Stoxx 50 futures were 0.6% lower.

Currencies

The Bloomberg Dollar Spot Index rose less than 0.1%.The euro was little changed at $1.1746.The yen fell 0.1% to 105.23 per dollar.The offshore yuan was little changed at 6.7100 per dollar.The Aussie fell 0.3% to 71.39 U.S. cents.

Bonds

The yield on 10-year Treasuries ticked down to 0.72%.The Australian 10-year yield fell 8 basis points to about 0.76%.

Commodities

West Texas Intermediate crude was steady at $41.03 a barrel.Gold was at $1,894.72 an ounce, down 0.4%.

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