Dow logs longest losing streak in a year
US equities closed sharply lower Tuesday as 10-year Treasury yield hit 3%. The S&P 500 lost 1.3% to 2634.56 led by industrial and technology shares. Eight of 11 main sectors ended lower. Dow Jones industrial average slumped 1.7% to 24024.13, posting the fifth straight decline. The Nasdaq composite index dropped 1.7% to 7007.35. The dollar weakened: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.2% to 90.755. Stock indices futures indicate mixed openings today.
Strong corporate reports failed to boost investors’ risk appetite as the 10-year Treasury yield briefly touched the psychologically important 3% level for the first time in four years. Economic data were positive: S&P/Case-Shiller national index rose 6.3% in February, compared with a year ago, hitting a four-year high. New home sales rose at annual rate of 694000 in March, a 4-month high .
European stocks pull back
European stocks ended lower Tuesday. Both the euro and British Pound turned higher against the dollar but have switched to losses currently. The Stoxx Europe 600 slipped 0.02%. The German DAX 30 lost 0.2% to 12550.82. France’sCAC 40 however gained 0.1% and UK’s FTSE 100 rose 0.4% to 7524.40. Indices opened 0.5%-0.7% today.
Weak economic data weighed on market sentiment also: the Ifo business climate index fell to 102.1 points from 103.3 points in March, below forecasts of 102.6.
Asian indices dip
Asian stock indices are falling today tracking Wall Street losses overnight. Nikkei lost 0.3% to 22215.32 despite continued yen weakness against the dollar. Chinese stocks are falling led by technology shares: the Shanghai Composite Index is down 0.4% and Hong Kong’s Hang Seng Index is 1.2% lower. Australian and New Zealand markets are closed for a holiday.
Brent futures prices are edging lower today as traders expect US inventories rose last week. The American Petroleum Institute late Tuesday report indicated US crude inventories rose by 1.1 million barrels last week. Prices fell yesterday: June Brent lost 1.1% to $75.47 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.
Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.
This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.