Saturday , August 17 2019

Treasuries fall, dollar rises on economic data; stocks mixed

Bloomberg

Treasuries fell and the dollar rose after solid data from the world’s largest economy added to signs the expansion is holding up even as central bank officials indicated they’re ready to cut rates. Stocks were mixed.
Benchmark 10-year yields halted a two-day slide, while the greenback climbed against most major currencies. The Dow Jones Industrial Average advanced to a fresh record, with Goldman Sachs Group Inc jumping on better-than-estimated results in its trading unit. Tech shares dropped as some industry giants braced for their biggest antitrust showdown with Congress in 20 years.
Strong figures on retail sales, factory output and housing heated up the debate over monetary easing as Federal Reserve officials gather this month to chart their course amid slowing global growth and trade tension.
Fed funds futures still indicate more than a quarter-point rate cut in July. Chairman Jerome Powell was expected to speak in Paris on Tuesday.
“It’s good to see this kind of strength especially in the current trade environment we’re in,” said Mike Loewengart, vice president of investment strategy at E*TRADE Financial.
“As we kick off earnings season, this is an important indicator of retail health and could give insight into what’s to come.”
Elsewhere, the euro slipped as investor confidence in Germany’s economic outlook fell. Despite strong UK wage numbers, the pound slumped on fresh Brexit worries. Oil traded near $60 a barrel.
Bank of America Corp and Taiwan Semiconductor are among companies due to report results this week.
Monetary policy decisions are due in Indonesia, South Korea and South Africa on Thursday.
The S&P 500 was little changed at 3,014 in New York. The Stoxx Europe 600 Index jumped 0.3 percent. The MSCI Asia Pacific Index dipped 0.2 percent.
The Bloomberg Dollar Spot Index increased 0.3 percent. The euro declined 0.4 percent to $1.1214.
The British pound sank 0.8 percent to $1.242. The Japanese yen dipped 0.3 percent to 108.24 per dollar.
The yield on 10-year Treasuries gained four basis points to 2.13 percent. Germany’s 10-year yield climbed one basis point to -0.24 percent. Britain’s 10-year yield increased one basis point to 0.812 percent.
The Bloomberg Commodity Index declined 0.4 percent. West Texas Intermediate crude climbed 0.1 percent to $59.65 a barrel. Gold dipped 0.2 percent to $1,410.70 an ounce.

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