Japanese index futures fell as the yen maintained its rebound from a six-month low amid concern the U.S. budget deal will give the Federal Reserve confidence to reduce stimulus. Copper futures slipped and Australia’s dollar traded at a five-year low versus New Zealand’s currency.
Stocks of the largest U.S. banks probably won’t outperform the broader market in 2014 after many climbed more than 30 percent this year, said Christopher Mutascio, an analyst at Stifel Financial Corp.’s KBW unit.
U.S. stocks fell the most in a month and Treasuries dropped on speculation the budget agreement will make the Federal Reserve more confident to reduce stimulus. Gasoline and oil slid while the yen and euro strengthened.
U.S. stocks fell a second day, giving the Standard & Poor’s 500 Index its biggest back-to-back drop in two months, as a congressional budget accord fueled speculation the Federal Reserve could trim stimulus next week.