Global Markets: Stocks dip as investors digest inflation data; bond yields up

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28/06/2024 20:42

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      US stocks down in afternoon trade
    

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      MSCI all country stock index hits record high early
    

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      Dollar index dips
    

  
 (Updates to 3 p.m. ET)
    By Caroline Valetkevitch
       NEW YORK June 28 (Reuters) - Global stock indexes edged
lower on Friday, reversing early gains as investors absorbed
data that showed U.S. inflation was flat in May but in line with
expectations, while Treasury yields turned higher.
    Uncertainty around the U.S. presidential election and the
imminent French legislative elections helped to offset the early
reaction in the bond market to the U.S. inflation data.
        The Fed's preferred inflation measure, the personal
consumption expenditures (PCE) index, showed that annual growth
in prices was 2.6% in May, as economists had expected, down from
2.7% in April.
    While the data fueled some investor optimism the Federal
Reserve could begin cutting interest rates in September, the
early rally in stocks faded.
    The MSCI world stock index, S&P 500 and Nasdaq all hit
record highs in early trading before retreating.
    "The Fed will see in this data what it wants to see and
that’s going to keep everyone guessing as to when the next cut
will be," said Brian Jacobsen, chief economist at Annex Wealth
Management in Menomonee Falls, Wisconsin.
    Investors were still digesting comments made during the U.S.
presidential debate late Thursday between Democratic President
Joe Biden and Republican rival Donald Trump ahead of the
November election. The debate left some of America's allies
bracing for a Trump return to office as president. 
    Trump Media & Technology Group  DJT.O  shares rose early but
were last down more than 11%.
    The yield on benchmark U.S. 10-year notes  US10YT=RR  was
last up 4.9 basis points at 4.337% versus 4.288% late on
Thursday.
    The Dow Jones Industrial Average  .DJI  fell 122.54 points,
or 0.31%, to 39,041.52, the S&P 500  .SPX  lost 8.53 points, or
0.15%, to 5,474.59 and the Nasdaq Composite  .IXIC  lost 28.70
points, or 0.15%, to 17,831.74.
    MSCI's gauge of stocks across the globe  .MIWD00000PUS  fell
0.49 points, or 0.06%, to 803.26. The STOXX 600  .STOXX  index
fell 0.23%.
    The dollar index  =USD , which measures the greenback
against a basket of currencies, was down 0.07% at 105.82
following the PCE data.
    Against the Japanese yen  JPY= , the dollar was nearly
unchanged at 160.71.
    The yen's slide to a 38-year low has fueled expectations of
intervention by the Japanese authorities to stem the currency's
weakness.
    The euro  EUR=  was up 0.12% at $1.0714, with investors
awaiting France's elections.
    Worries about the outcome of the two-stage French
parliamentary elections that start on Sunday pushed the risk
premium on French government bonds over German bonds to its
widest since the euro zone debt crisis in 2012.
    U.S. West Texas Intermediate (WTI) crude futures  CLc1  fell
20 cents, or 0.24%, to settle at $81.54 a barrel.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD    http://tmsnrt.rs/2egbfVh
Global asset performance    http://tmsnrt.rs/2yaDPgn
Asian stock markets    https://tmsnrt.rs/2zpUAr4
On a tear    https://tmsnrt.rs/4cjWmKq
STOXX 600 in June over the years    https://tmsnrt.rs/3XJ0KOp
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Caroline Valetkevitch in New York; Additional
reporting by Huw Jones in London; Editing by Kim Coghill,
Jacqueline Wong, David Goodman, Christina Fincher and Daniel
Wallis)
 ((caroline.valetkevitch@thomsonreuters.com))
 
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For the state of play of Asian stock markets please click on:  0#.INDEXA ))