Stocks stand near peaks; T-Bill Yields, Dollar Firm as Taper Debate Dominates
Wednesday’s data hinted that US inflation may have peaked, reassuring investors that the Federal Reserve will not feel pressured to accelerate plans to curb emergency support to the economy .
However, producer prices on Thursday posted their biggest increase in more than a decade.
Overall, investors believed that the possibility of a near-term decline was fading.
“There continues to be indications that this spike in inflation is temporary. I don’t think we’re in a time where we’re near a Fed cone,” said Tim Ghriskey, chief strategist of the Fed. investments at Inverness Counsel in New York. , which manages $ 4 billion in assets.
The MSCI gauge of stocks across the world, which hit a record Wednesday, gained 0.04%.
U.S. stock indices were mixed after the Dow Jones and S&P 500 closed at record highs on Tuesday.
The Dow Jones Industrial Average fell 15.47 points, or 0.04%, to 35,469.5, the S&P 500 gained 10.5 points, or 0.24%, to 4,458.2 and the Nasdaq Composite added 44.42 points, or 0.3%, to 14,809.56.
European stocks tied their longest winning streak since 2017, closing 0.1% higher and extending their gains for a ninth consecutive session.
US Treasury yields edged up, building on recent gains, after a 30-year bond auction failed to give the market convincing direction.
Benchmark 10-year notes last fell 3/32 to a return of 1.3674%, down from 1.359% on Wednesday night.
The dollar index rose 0.146%, with the euro down 0.07% to $ 1.1729.
Gold prices held slightly above the $ 1,750 mark as expectations of a rapid decline in Federal Reserve asset purchases eased, offsetting a dollar and firmer returns . [L4N2JNBFV]
Spot gold was flat at $ 1,751.77 an ounce. US gold futures were down 0.1% to $ 1,751.80.
BEAR IN THE CHINA SHOP
A significant number of US earnings reports were due later today. Walt Disney will report, with Airbnb, Doordash and Chinese internet giant Baidu, whose US-listed shares have more than halved since February as Beijing makes sweeping regulatory changes. [.N]
Asian stocks fell overnight again, led by a 0.8% drop in Chinese blue chips and a 0.5% drop in Hong Kong, as weaker-than-expected Chinese lending data triggered liquidity problems.
Chinese online insurer ZhongAn, which fell 11.5% after state media said China’s banking and insurance regulator would step up oversight of online insurance companies was among the biggest sliders .
Nervous traders were quick to respond to remarks from media and Chinese state officials, after many were surprised by new, tougher-than-expected rules last month for the private tutoring industry https://www.reuters.com / world / china / chinas -tal-education-expects-hit-new-private-tutoring-rules-2021-07-25, one of the many regulatory crackdowns that have shaken up the https-owned tech industries : //www.reuters.com/world/ China / education-bitcoin-chines-season-regulation-crackdown-2021-07-27.
While major global stock indices have steadily hit record highs, MSCI’s main Asian benchmark is now down more than 10% from its February high. Some Chinese stocks lost nearly 90%.
“Silver is only found in the US and European markets right now, and it’s also our preferred market,” said Daniel Lam, senior cross-asset strategist at Standard Chartered Wealth Management.
Oil prices fell after the International Energy Agency (IEA) said the spread of the Delta variant of the coronavirus would slow the recovery in global demand for oil. nL8N2PJ2GI
US crude oil futures were down 16 cents or 0.2% at $ 69.09 per barrel. Brent crude futures were at $ 71.31 per barrel, down 13 cents or 0.2%.
Chart: Chinese stocks weakened by Beijing crackdown
Chart: Global stocks are stronger
(Additional reporting by Devik Jain and Ambar Warrick in Bengaluru; Editing by David Holmes, Dan Grebler and Chizu Nomiyama)
By Matt Scuffham