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Stocks fall with safe haven possessions in need, growth concerns in focus

MSCI's international equities gauge and oil costs fell on Wednesday while safehaven possessions Treasuries and Japan's yen remained in need as mixed batch of economic data drove issues about slowing growth.

Crude oil futures settled lower for the third day in a row, including a more than 4% loss on Tuesday.

In U.S. Treasuries, yields fell and the closely seen yield curve in between two-year and 10-year notes turned positive after information showed that U.S. job openings was up to a 3-1/2- year. low in July.

On Tuesday, Wall Street stock indexes registered their. most significant daily percentage drops because early August as financiers. took revenues while weak U.S. manufacturing data did little to. boost danger hungers.

On Wednesday, the S&P 500 was last down after. spending the early morning flitting in between red and green as investors. waited anxiously for the remainder of the week's data. Thursday will. bring a reading on the U.S. services market with unemployed. claims data.

Friday's fiercely expected August report for nonfarm. payrolls is expected to supply the clearest clues regarding the. health of the U.S. economy and whether the Federal Reserve will. cut interest rates this month by a quarter or a half a. percentage point.

In a historically weak month for stocks, financiers are. acting more cautious and more worried about the growth outlook. than the inflation outlook, stated Anthony Saglimbene, chief. market strategist at Ameriprise Financial in Troy, Michigan.

Wednesday's information was a variety. A Commerce Department. report showed brand-new orders for U.S.-manufactured items increased. more than anticipated in July, boosted by defense airplane. But. demand elsewhere was moderate with borrowing expenses high.

U.S. job openings in July dropped to their least expensive level. since January 2021, recommending the labor market was slowing. and leading traders to contribute to bets that the Fed will provide a. half-a-percentage-point cut in rates at its meeting this month.

The setup is changing. Perhaps three-four months earlier, markets. would feel good about a 50 basis point cut. Now a 50 basis point. cut would signal that growth is slowing more than expected and. that the Fed is behind the curve, stated Ameriprise's Saglimbene.

Likewise on Wednesday, Atlanta Federal Reserve President Raphael. Bostic stated the U.S. central bank need to not keep rates of interest. too expensive a lot longer or it risks damaging employment too much.

On Wall Street at 2:54 p.m. (1854 GMT) the Dow Jones. Industrial Average fell 47.42 points, or 0.12%, to. 40,889.51; the S&P 500 lost 16.20 points, or 0.29%, to. 5,512.73; and the Nasdaq Composite lost 61.41 points, or. 0.36%, to 17,074.89.

MSCI's gauge of stocks around the world fell. 5.44 points, or 0.66%, to 814.03. Earlier in the day, Europe's. STOXX 600 index closed down 0.97%.

In forex markets, the dollar eased against a lot of. major currencies after the July U.S. job openings information slanted. the chances even more in favor of larger U.S. rate cuts while the yen. benefited from a safe haven quote.

The dollar index, which measures the greenback. against a basket of currencies consisting of the yen and the euro,. fell 0.32% to 101.37.

The euro was up 0.28% at $1.1074 while versus the. Japanese yen, the dollar compromised 1.05% to 143.94.

Stock exchange instability and dropping U.S. yields have actually made. the yen a strong performer, stated Marc Chandler, primary market. strategist at Bannockburn Global Forex.

In Treasuries, the yield on benchmark U.S. 10-year notes. fell 7.6 basis points to 3.768%, from 3.844% late on. Tuesday. The 2-year note yield, which usually moves. in step with rates of interest expectations, fell 11.4 basis points. to 3.7745%, from 3.888% late on Tuesday.

A carefully watched part of the U.S. Treasury yield curve. determining the gap between yields on two- and 10-year Treasury. notes, seen as an indication of economic. expectations, was last at an unfavorable 0.9 basis points.

The huge event of the week is available in the type of Friday's. payrolls print, stated Ian Lyngen, head of U.S. rates method at. BMO Capital Markets in New York City. That's to a big extent going. to offer us the plan for what to expect from the Fed. The. employment information is now overshadowing inflation as the most significant. risk to near-term policy expectations.

Crude oil prices fell on pessimism about need in the. coming months as unrefined producers offered mixed signals about. supply boosts. Dull data from the U.S. and China have. added to persistent expectations for a weaker global economy.

U.S. crude settled down 1.6% at $69.20 a barrel while. Brent settled at $72.70 per barrel, down 1.4%.

Gold prices reversed course to gain ground with assistance from a. softer dollar and lower yields after the weak data on U.S. task. openings. Area gold added 0.05% to $2,494.07 an ounce.

(source: Reuters)