US stocks joined declines in global equities, with materials producers under pressure amid a selloff in commodities. The dollar weakened versus the euro after strong growth in Germany bolstered the common currency.
S&P 500 Index fell for the third time in four days. Data showing Chinese growth is slowing sparked commodity declines that hit equities in Asia.
The euro’s rally weighed on European exporters, sending the region’s equity benchmark towards its longest slide in a year.
The yield on China’s 10-year bonds breached 4 percent for the first time in three years. Treasuries trimmed gains after US producer prices in October beat estimates.
“Don’t count inflation out yet is the message for the Fed in today’s report because producers see inflation is stirring,” Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, wrote. “Today’s inflation data will keep the Fed on course to raise rates a final time this year at the
Markets have been under pressure in the after a global rally took US stocks to records and Japan’s to the highest in a quarter century. Investors on Tuesday focussed on a European Central Bank conference featuring Mario Draghi, Janet Yellen, Mark Carney and Haruhiko Kuroda, who commented about how their institutions communicate and guide markets. But there were few surprises, and attention will likely now shift to anticipating the US inflation and retail sales numbers that could influence Federal
Reserve interest-rate hike odds.
Elsewhere, Venezuela was declared in default by S&P Global Ratings after missing two interest payments on its debt. Indian sovereign bonds fell for a third day, with the benchmark 10-year yield reaching the highest since September 2016, on accelerating consumer inflation data. Bitcoin edged higher after falling for three days.
BOE officials address the bank’s future on Thursday, while Draghi speaks a second time on Friday. A string of Fed appearances may further illuminate the FOMC’s commitment to a December hike.
The S&P 500 Index dropped 0.3 percent as of 9:46 am New York time. The Stoxx Europe 600 Index sank 0.6 percent, hitting the lowest in seven weeks with its sixth consecutive decline. The MSCI All-Country World Index fell 0.2 percent. The MSCI Emerging Market Index fell less than 0.05 percent, the largest advance in a week.
The Bloomberg Dollar Spot Index decreased 0.3 percent, touching lowest in almost three weeks on the largest dip in almost 10 weeks. The euro climbed 0.7 percent to $1.1752, reaching the strongest in almost three weeks on its fifth consecutive advance and the biggest increase in almost 10 weeks. The yield on 10-year Treasuries fell two basis points to 2.3877 percent, the first retreat in a week.
The Nikkei 225 Stock Average closed little changed, while the Topix index lost 0.3 percent in a fourth day of losses. Hong Kong’s Hang Seng Index edged lower, while the Shanghai Composite slid 0.5 percent. Australia’s S&P/ASX 200 index dropped 0.9 percent and the Kospi index in Seoul slid 0.2 percent. The MSCI Asia Pacific Index fell 0.2 percent in a third day of losses. The Japanese yen rose 0.1 percent to 113.47 per dollar.