Latest News

Stocks fall, yields rise as investors weigh rate hike expectations

0

U.S. stocks ease, Treasury yields rise as investors weigh higher interest rates By Reuters

Breaking News

‘;

Economy 3 hours ago (Sep 06, 2022 17:59)

© Reuters. FILE PHOTO: People pass by an electronic screen showing Japan’s Nikkei share price index inside a conference hall in Tokyo, Japan June 14, 2022. REUTERS/Issei Kato/File Photo

By Caroline Valetkevitch

NEW YORK (Reuters) -Global stock markets were mostly lower on Tuesday while benchmark U.S. Treasury yields jumped to their highest levels since June as a U.S. services industry report underscored expectations the Federal Reserve will need to keep hiking interest rates.

The U.S. dollar strengthened, while the Japanese yen hit a fresh 24-year low.

Wall Street’s three major indexes were down slightly in choppy trading after the market was closed for Monday’s Labor Day holiday.

A survey from the Institute for Supply Management (ISM) showed the U.S. services industry picked up in August for the second straight month amid stronger order growth and employment, while supply bottlenecks and price pressures eased.

The ISM non-manufacturing PMI edged up to a reading of 56.9 last month, beating economists’ expectations.

“People recognize the U.S. economy is slowing, but it’s still the least ugly in the contest,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.

The European Central Bank is widely expected to lift rates sharply when it meets later this week. The next U.S. Fed rate decision comes on Sept. 21.

The Fed is expected to raise rates by another 75 basis points at its Sept. 20-21 meeting, which would raise the fed funds rate to 3.0% to 3.25%. That is up from the zero to 0.25% band in March.

The Dow Jones Industrial Average fell 95.07 points, or 0.3%, to 31,223.37, the S&P 500 lost 8 points, or 0.20%, to 3,916.26 and the Nasdaq Composite dropped 46.63 points, or 0.4%, to 11,584.24.

The pan-European STOXX 600 index rose 0.24% and MSCI’s gauge of stocks across the globe shed 0.30%.

{{2126|The dodollar index rose 0.5%, while the euro was sliding again having failed to get back above parity against the dollar [/FRX]. The euro was last down 0.17% to $0.9909.

The Japanese yen weakened 1.62% versus the greenback to 142.92 per dollar.

Sterling, which has been one of the world’s weakest major currencies over the last month, rose as Liz Truss’s installation as new UK prime minister fed expectations of a big energy relief package there.

Sterling was last trading at $1.1534, up 0.18% on the day.

In U.S. Treasuries, benchmark 10-year note yields were last 3.34%, the highest since June. They have risen from a four-month low of 2.516% on Aug. 2.

In energy, U.S. crude recently rose 0.56% to $87.36 per barrel and Brent was at $93.47, down 2.37% on the day.

U.S. stocks ease, Treasury yields rise as investors weigh higher interest rates

New British PM Truss spoke with Ukraine’s Zelenskiy in first call with foreign leaderBy Reuters – Sep 06, 2022

LONDON (Reuters) – Britain’s new Prime Minister Liz Truss spoke with Ukrainian President Volodymyr Zelenskiy in her first call with a foreign leader where he invited her to…

Dollar gains, euro slips further from parityBy Reuters – Sep 06, 2022

By Herbert Lash and Alun John NEW YORK/LONDON (Reuters) -The dollar marched higher on Tuesday after a report on the U.S. services industry in August reinforced the view that the…

British PM Truss reappoints Ben Wallace as defence ministerBy Reuters – Sep 06, 2022

LONDON (Reuters) – Britain’s new Prime Minister Liz Truss reappointed Ben Wallace as defence minister, Downing Street said in a statement on Tuesday. Wallace, who has seen his…

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Rees-Mogg appointed new UK business minister

Previous article

PM Truss tells Biden UK will work with U.S. to tackle economic problems

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News