Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexEconomic EventsPress releases

Weak oil weighs on global stocks; data puts focus on rate hikes

share with twitter share with LinkedIn share with facebook
share via e-mail
11/15/2017 | 10:26pm CET
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York

Stocks around the world registered their longest losing streak in eight months on Wednesday as weaker oil prices weighed and the dollar came back from session lows after U.S. data boosted expectations of further Federal Reserve interest rate hikes.

The dollar clawed back earlier losses against a basket of major currencies after U.S. data showed a rise in retail sales last month and an uptick in underlying inflation, which cemented expectations for further interest rate hikes.

The U.S. Treasury yield curve flattened to a 10-year low as fixed income investors also priced in rate hikes.

"With signs that underlying inflation pressures are starting to pick back up again, we think the Fed will need to step up the pace of tightening next year, raising the Fed funds rate a total of four times in 2018," said Michael Pearce, U.S. economist at Capital Economics in New York.

The MSCI world equity index <.MIWD00000PUS>, which tracks shares in 47 countries, was set for its fifth straight day of declines, its longest run in the red since March.

While oil pushed down energy sector stocks, declines in defensive sectors such as utilities and gains in the financial sector implied bets on rising rates.

Lifted by steady economic growth, supportive monetary policies and rising corporate earnings, global equities have rallied this year, with indexes in the United States and Europe recently scaling record highs and Japan's Nikkei climbing to a 26-year peak.

The Dow Jones Industrial Average <.DJI> fell 138.19 points, or 0.59 percent, to 23,271.28, the S&P 500 <.SPX> lost 14.25 points, or 0.55 percent, to 2,564.62 and the Nasdaq Composite <.IXIC> dropped 31.66 points, or 0.47 percent, to 6,706.21.

The pan-European FTSEurofirst 300 index <.FTEU3> lost 0.43 percent and MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.51 percent.

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets


Oil prices fell for a fourth consecutive session after the U.S. government reported an unexpected increase in crude and gasoline stockpiles, but an increase in refining runs and a drawdown in distillates moved prices up from session lows.

Prices also remained under pressure from this week's International Energy Agency (IEA) outlook for slower growth in global crude demand.

U.S. crude <CLcv1> fell 0.77 percent to $55.27 per barrel and Brent <LCOcv1> was last at $61.82, down 0.63 percent on the day.

The gap between U.S. two-year note and U.S. 10-year note yields contracted to 63.4 basis points, the flattest since November 2007 <US2US10=TWEB>.

Benchmark 10-year notes <US10YT=RR> last rose 16/32 in price to yield 2.3257 percent, from 2.381 percent late on Tuesday.

The 30-year bond <US30YT=RR> last rose 1 and 13/32 in price to yield 2.7685 percent, from 2.839 percent late on Tuesday.

Base metal prices fell as China data stoked fears of a slowdown in the world's top commodities consumer, and oil and stocks declines indicating broad-based risk aversion.

Spot gold <XAU=> dropped 0.2 percent to $1,278.72 an ounce.

(Additional reporting by Saqib Iqbal Ahmed, Gertrude Chavez-Dreyfuss and Rodrigo Campos in New York, Ritvik Carvalho in London; Editing by Bernadette Baum and Nick Zieminski)

By Sinead Carew

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
11:29a UK at turning point after difficult year - Hammond
10:36a PES PARTY OF EUROPEAN SOCIALISTS : 19/11/2017 PES leaders from the Western Balkans discuss integration
10:26a AMF ARAB MONETARY FUND : High-Level Policy Forum Venture Finance in the Arab World – Accelerating Arab Startups November 20-21, 2017 Amphitrite Palace, Skhirat, the Kingdom of Morocco
10:11a CBI CONFEDERATION OF BRITISH INDUSTRY : 'Investing in skills is at heart of building an economy fit for the future'
10:05a Hammond, under pressure on budget, promises more homes
09:16a CITY OF BREA CA : Holiday Giving Is An Important Brea Tradition
09:06a ERNST & YOUNG LLP : TESARO, Inc. Co-Founders named Entrepreneur Of The Year®
07:16a CFL CANADIAN FOOTBALL LEAGUE : 53rd Vanier Cup matchup set for next Saturday
03:47a 'No fireworks' at NAFTA talks, but few signs of progress
Latest news "Economy & Forex"