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Stocks turns lower in choppy trade, yen drops after BOJ talks down rate walkings

Wall Street equity indexes lost ground after opening higher on Wednesday while a. bond auction pressed Treasury yields higher. and the dollar rose against the yen after mindful central. banker comments.

Oil costs rallied after data showed a bigger-than-expected. attract U.S. crude stockpiles, even as worries about weak oil. need in China continued.

Earlier Bank of Japan Deputy Governor Shinichi Uchida stated. the reserve bank will not raise interest rates when financial. markets are unstable, pressing the yen down.

But in equities, the Nikkei increased 1%, contributing to. Tuesday's 10% rebound from Monday's sell-off. The Nikkei's 12.4%. sell-off on Monday started a global stock as investors entered into. risk-off mode.

After opening higher on Wednesday Wall Street's benchmark. S&P 500 started losing ground in the late early morning and fell. even more following a weak auction of U.S. 10-year Treasuries.

While the S&P included 1% on Tuesday, Chad Oviatt, Director of. Financial Investment Management at Huntington Private Bank pointed out. that it had actually ended the session well below its peak for the day.

Today appears to be an extension of the reactionary forces. in the market and we appear to be doing not have conviction in that 'buy. the dip mentality', said Oviatt. It could be that investors. are resting on the sidelines due to market volatility ... you. await stability before wading back in.

Wednesday's data, however, was upbeat as rate of interest for. the most popular U.S. home loan plunged recently to their. lowest levels in 15 months, after the Federal Reserve stated it. might start cutting rates in September. And the Home mortgage Bankers. Association said refinancing applications struck a two-year high.

On Wall Street at 02:59 p.m. the Dow Jones Industrial. Average fell 211.80 points, or 0.54%, to 38,785.86, the. S&P 500 lost 26.89 points, or 0.51%, to 5,213.14 and the. Nasdaq Composite lost 120.72 points, or 0.74%, to. 16,246.14.

MSCI's gauge of stocks across the globe. pared gains and last rose 0.88 points, or 0.11%, to 771.87 after. previously striking a session high of 783.83. Europe's STOXX 600. index had actually closed up 1.5%.

In currencies, the yen dropped after the BoJ talk about. walkings, which soothed investors' issues about volatility in the. Japanese currency, which had actually soared against the dollar on Monday. on worries of a U.S. economic crisis, triggering a wider market rout.

Against the Japanese yen, the dollar enhanced. 1.84% to 146.95. The euro was down 0.09% at $1.092.

The dollar index, which determines the greenback. versus a basket of currencies consisting of the yen and the euro,. gained 0.23% at 103.22.

In U.S. Treasuries, yields were volatile after the Treasury. Department's auction of $42 billion in 10-year notes.

The yield on benchmark U.S. 10-year notes rose. 8.2 basis points to 3.97%, from 3.888% late on Tuesday.

The 2-year note yield, which typically moves in. step with rates of interest expectations, rose 2.5 basis indicate. 4.0096%, from 3.985%. The 30-year bond yield rose. 8.4 basis points to 4.2614%.

Oil prices climbed on issues that an intensifying Middle. East conflict might harm oil production, even as worries about. weak unrefined demand persisted.

U.S. crude settled up 2.77% at $75.23 a barrel and. Brent rose to $78.33 per barrel, up 2.42% on the day.

In rare-earth elements, spot gold slowed and was last. down 0.16% at $2,385.63 an ounce. U.S. gold futures fell. 0.04% to $2,388.20 an ounce.

(source: Reuters)