Global Markets: Stocks dip as investors digest inflation data; dollar dips

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28/06/2024 23:46

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      US stocks end down 
    

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      MSCI all country stock index hits record high early
    

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      Dollar index dips
    

  
 (Updates to 5:45 p.m. ET)
    By Caroline Valetkevitch
       NEW YORK, June 28 (Reuters) - Global stock indexes edged
lower on Friday, reversing early gains, while Treasury yields
rose and the U.S. dollar declined as investors absorbed data
that showed U.S. monthly inflation was unchanged in May.
    The flat reading in the U.S. personal consumption
expenditures (PCE) price index last month followed an unrevised
0.3% gain in April, the data showed. 
    In the 12 months through May, the PCE price index increased
2.6% after advancing 2.7% in April. Last month's inflation
readings were in line with economists' expectations.
    The data fueled optimism for some investors that the Federal
Reserve could begin cutting interest rates in September. 
   
    The MSCI world stock index, S&P 500 and Nasdaq all hit
record highs in early trading but then retreated.    
    On Wall Street, volume surged toward the closing bell when
the FTSE Russell finalized the reconstitution of its indexes. It
was the second-biggest daily volume of the year.
    "In the morning, the market seemed to be most focused on the
PCE report," said Quincy Krosby, chief global strategist at LPL
Financial in Charlotte, North Carolina. 
    But, "you had the Russell reconstitution, and the
expectations were that we could see - especially toward the
afternoon and close - quite a bit of movement and churn in the
market," she said. "You also had end-of-the-quarter
repositioning and selling."
    The Dow Jones Industrial Average  .DJI  fell 45.20 points,
or 0.12%, to 39,118.86, the S&P 500  .SPX  lost 22.39 points, or
0.41%, to 5,460.48 and the Nasdaq Composite  .IXIC  lost 126.08
points, or 0.71%, to 17,732.60.
    For the quarter, with the S&P 500 gained 3.9%, the Nasdaq
rose 8.3% and the Dow fell 1.7%.
    MSCI's gauge of stocks across the globe  .MIWD00000PUS  fell
1.74 points, or 0.22%, to 802.01. The STOXX 600  .STOXX  index
fell 0.23%.
    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 in
the day but ended down 10.8%.
    U.S. Treasury yields were higher amid political uncertainty
following the U.S. presidential debate and ahead of the French
legislative elections.
    Yields, which move inversely to prices, had declined after
the U.S. inflation reading.
    The yield on benchmark U.S. 10-year notes  US10YT=RR  rose
10.4 basis points to 4.392%, from 4.288% late on Thursday.
    The first round of voting in France is on Sunday, but the
final outcome will not be known until after a second round of
voting on July 7.
    The U.S. dollar eased marginally after the inflation data.
    The dollar initially fell against the yen, the currency pair
most sensitive to U.S. economic data because of a high, positive
correlation to Treasury yields. 
    The greenback, however, edged higher to trade near flat on
the day, with investors still focused on the wide interest rate
differential between the United States and Japan.
    The dollar was last up slightly against the Japanese yen at
160.815 yen  JPY=EBS , after earlier hitting a 38-year high of
161.27 yen.
    The yen's slide has fueled expectations of intervention by
the Japanese authorities to stem the currency's weakness. 
    The dollar index  =USD , which measures the greenback
against a basket of currencies, fell 0.05% at 105.84, with the
euro  EUR=  up 0.1% at $1.0713.
    Oil prices fell. 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
Monthly change in US Personal Consumption Expenditures Price
Index    https://reut.rs/45ICjCW
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (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))
 
((To read Reuters Markets and Finance news, click on 
https://www.reuters.com/finance/markets
For the state of play of Asian stock markets please click on:  0#.INDEXA ))