US stocks retreat; dollar slips with bonds - BNN

U.S. stocks fell for a second day on concern over escalating Chinese-American tensions and worries the recovery in the world’s largest economy has stalled. Spot gold topped US$1,900 an ounce for the first time since 2011.

The S&P 500 turned lower for the week and the Nasdaq 100 hit a three-week low. Intel Corp. plunged on a warning of a production delay. Rival chipmaker Advanced Micro Devices Inc. gained. Verizon Communications Inc. gained after topping sales estimates, somewhat offsetting Intel’s drag on the Dow Jones Industrial Average.

Shares in China bore the brunt of losses overnight as Beijing ordered the U.S. to shut a consulate in a tit-for-tat retaliation. The dollar extended this week’s slide to the weakest level since January, and the offshore yuan dipped. Core European bonds fell after U.S. Treasuries turned lower. Five-year Treasury yields touched an all-time low before bouncing back.

Beijing’s latest move further strains the increasingly fraught relationship with the U.S., which forced China to leave its mission in Houston earlier this week. The two superpowers have also recently clashed on trade and early handling of the coronavirus, raising fears of a protracted conflict.

“We won’t be surprised if there is some sell-off because investors are shifting focus back to this geo-political tension,” Janet Mui, an investment director at Brewin Dolphin, said on Bloomberg TV.

Also hitting sentiment was the first uptick in U.S. jobless claims since March on Thursday. While European manufacturing data for July showed a return to growth, firms cut jobs for a fifth straight month. Earnings beats keep rolling in, though they’re coming against low expectations.

These are the main moves in markets:

Stocks

The S&P 500 Index dipped 0.9 per cent to 3,202.73 as of 1:13 p.m. New York time, the lowest in more than a week.

The Dow Jones Industrial Average decreased 0.7 per cent to 26,442.78, the lowest in more than a week.

The Nasdaq Composite Index declined 1.4 per cent to 10,303.75, the lowest in almost three weeks.

The Stoxx Europe 600 Index declined 1.7 per cent to 367.29, the lowest in more than a week on the biggest drop in four weeks.

Currencies

The Bloomberg Dollar Spot Index dipped 0.5 per cent to 1,187.43, the lowest in more than six months.

The euro climbed 0.3 per cent to US$1.1637, reaching the strongest in about 22 months on its sixth consecutive advance.

The Japanese yen appreciated 1.1 per cent to 105.72 per dollar, the strongest in almost 19 weeks on the largest increase in more than six weeks.

Bonds

The yield on 10-year Treasuries was unchanged at 0.58 per cent, the lowest in three months.

Germany’s 10-year yield advanced three basis points to -0.45 per cent, the largest gain in more than a week.

Britain’s 10-year yield increased two basis points to 0.144 per cent.

Commodities

West Texas Intermediate crude decreased 0.5 per cent to US$40.83 a barrel.

Gold strengthened 0.7 per cent to US$1,900.20 an ounce, reaching the highest in about nine years on its sixth consecutive advance.

Copper dipped 1.7 per cent to US$2.89 a pound, the lowest in a week on the largest decrease in almost six weeks.

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2020-07-24 17:15:00Z
CBMiUGh0dHBzOi8vd3d3LmJubmJsb29tYmVyZy5jYS91LXMtc3RvY2tzLXJldHJlYXQtZG9sbGFyLXNsaXBzLXdpdGgtYm9uZHMtMS4xNDcwMDcw0gEA