snaps eight-session win streak
US stocks retreated Tuesday as Treasury yield breached above the 3% threshold. The ended 0.7% lower at 2711.45. Ten of 11 main sectors ended in negative territory. lost 0.8% to 24706.41 after eight-session win streak. The index fell 0.8% to 7351.63. The dollar strengthening accelerated: the live dollar index data show the ICE , a measure of the dollar’s strength against a basket of six rival currencies, rose 0.6% to 93.233 and is down currently. Stock indices futures indicate higher openings today.
Stocks fell as Treasury yields rose on expectations the Federal Reserve’s monetary tightening and rising budget deficit will push interest rates higher, negatively affecting corporations’ earnings outlook as borrowing costs rise. Positive economic data failed to prevent the market pullback: rose for a second straight month in April, and the rose in May, both indicating accelerating economy.
European stocks recover on positive data
European stocks recovered Tuesday in volatile trading helped by positive data and earnings reports. The joined accelerated slide against the dollar with both currencies gaining currently. The added 0.1%. The German DAX 30 lost 0.1% to 12970.04. France’s rose 0.2% and UK’s gained 0.2% to 7722.98. Markets opened mixed today.
The preliminary reading of 0.4% GDP growth in the euro-zone was confirmed, in line with expectations. Bigger than expected slowdown of German economy weighed on DAX: Q1 slowed to 1.2% from 2.5% in the fourth quarter of last year.
Asian indices down
Asian stock indices are mostly lower today after weak Japanese data and North Korea said it would reconsider a summit with President Trump next month if the US demands denuclearization. lost 0.4% to 22717.23 as Q1 shrank 0.6% over year and yen rose against the dollar. Chinese stocks are mixed: the is down 0.7% and Hong Kong’s is flat. Australia’s is up 0.2% despite Australian dollar’s climb against the greenback.
Brent futures prices are lower today ahead of US inventory report as traders expect US rose last week. The American Petroleum Institute late Tuesday report indicated US crude inventories rose unexpectedly by 4.9 million barrels last week. Prices ended higher yesterday on rising Middle East tensions: July Brent gained 0.3% to $78.43 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Inventories.
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