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Stocks end mixed as tech crashes; Dollar Rallies: Markets Wrap



U.S. Stocks ended mixed, with stocks of technology companies slumping on large indices. The dollar recovered to its highest level in more than three months as the prospect of 3-percent US Treasury yields boosted demand.

Fluctuations in equities were likely caused by "the 10-year bounce against 3 percent." Gary Bradshaw, Portfolio Manager at Hodges Capital Management, Dallas, said by phone. "Volatility in the market has made investors a little nervous and there's news about Apple and the chip stocks that cause some consternation."

The greenback strengthened against major competitors as the yield on the US-1

0 -year note reached 2.99 percent for the first time since 2014. The pound joined major currencies against the dollar as British Prime Minister Theresa May fought to avert a cabinet revolt against Brexit. Aluminum prices fell after the US eased its position on sanctions against Russian corporation United Co Rusal.

Semiconductor stocks continued their downward movement from last week, when another chipmaker reported weak gains. The Philadelphia Stock Exchange Semiconductor Index fell 1.3 percent on Monday, expanding its four-day price by 6 percent.

The 60-day correlation between the Bloomberg Dollar Spot Index and the 10-year benchmark Treasury yields has returned to positive territory in recent months, the first time since 2016, that has been negative.

"The entire market is watching interest rates move, and if we manage to break and expand further, the dollar will follow," wrote Brad Bechtel, global head of FX at Jefferies, in a note Monday. "If we fail and get lower again, the dollar is likely to follow." Elsewhere, aluminum fell even 9.4 percent, after the US Treasury Department said it would make it easier for Rusal to sanction Oleg Deripaska on Monday. It extended the deadline for the reduction of business with the Russian aluminum producer by almost five months.

These are some key events that will take place this week :

  • French President Emmanuel Macron begins a three-day visit to the US Monday
  • US GDP and jobless claims.
  • The winning season continues. Among these reported: Alphabet / Google, Amazon.com, Samsung and Credit Suisse.
  • The European Central Bank has an interest rate decision on Thursday. Investors will look for signs that officials are preparing a postponement of stimulus packages for their June meeting.
  • The Bank of Japan announces its latest landmark ruling on Friday and publishes a quarterly outlook.

Terminal users can read more in our markets Live Blog

And these are the main moves in the markets:

Stocks

  • The S & P 500 Index has changed little at 2,670.29 since 16:06 In New York, the Dow Jones Industrial Average fell 0.1 percent and the Nasdaq Composite Index fell 0.3 percent.
  • The Stoxx Europe 600 Index rose 0.4% and the MSCI Asia Pacific Index 0.9%.
  • United Kingdom The FTSE 100 Index rose 0.4 percent.
  • The MSCI Emerging Market Index fell 1.2 percent, the lowest level in nearly three weeks.

Currencies

  • The Bloomberg Dollar Spot Index rose 0.8 percent, peaking at its fifth straight advance in nearly 14 weeks.
  • The euro weakened by 0.7 percent to $ 1.2208 and fell to the weakest in nearly eight weeks.
  • The British pound fell 0.4 percent to $ 1.3943.
  • The Japanese yen fell 1 percent to $ 108.72 a dollar, the weakest level in 10 weeks.

Bonds

  • The 10-year Treasury yield rose one basis point to 2.97 percent, having reached its highest level in more than four years.
  • Germany's ten-year yield rose by five basis points to 0.63 percent, the highest in six weeks.
  • The ten-year British yield rose six basis points to 1.54 percent.

Commodities

  • West Texas Intermediate crude rose 0.9 percent to $ 69.02 a barrel.
  • Gold fell 0.9 percent to $ 1,324.20 an ounce after it had hit least in more than three weeks.

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