- Dow, S&P 500 fall; Nasdaq unchanged
- 10-year yield falls to two-week lowest; yield curve is flattening
- Gold rises as dollar, crude decline
NEW YORK, Oct. 27 (Reuters) – Global stock markets gave up on recent gains on Wednesday, as US Treasury yields fell to a two-week low as traders weighed in on continued positive corporate results and a resurgence in US-China tensions which could make the supply worse. chain concerns.
Major US companies, including tech giants Microsoft Corp (MSFT.O) and Google parent company Alphabet Inc (GOOGL.O), have reported stronger-than-expected gains, leading the S&P 500 (.SPX) and Dow Industrials (.DJI) to rally this week. closing highs, while the tech-heavy Nasdaq (.IXIC) is 1% below its record high.
But the US telecoms regulator voted on Tuesday to revoke the license for the US subsidiary of China Telecom (0728.HK) to operate in the United States, opening a new front in the already tense relationship between the world’s two major economies and investor concerns about supply chains. read more
“This is clearly one of the most intense reporting weeks for technology stocks, and companies that have been real darlings are still reporting significant numbers,” said Tom Plumb, portfolio manager at the Plumb Balanced Fund.
“There has been a dichotomy between the companies that have proactively responded to supply chain issues as compared to those that have waited for a thaw in the US relationship with the Chinese government.”
The MSCI World Equity Index (.MIWD00000PUS), which tracks stocks in 50 countries, fell 0.55%, while the pan-European STOXX 600 (.STOXX) index fell 0.36%.
On Wall Street, the Nasdaq was flat on Wednesday, while the Dow and S&P 500 closed lower, dragged down by cyclical sectors such as financials, healthcare, energy and manufacturing.
The Dow Jones Industrial Average (.DJI) fell 0.74% to 35,490.69, the S&P 500 (.SPX) lost 0.51% to 4,551.68 and the Nasdaq Composite (.IXIC) remained flat at 15,235.84.
US 10-year Treasury yields fell to a two-week low, while 2-year Treasury yields hit a 19-month high, further flattening the yield curve as the possible timing of the first rate hike of the US Treasury Federal Reserve came into sharper focus.
The US 10-year yield fell to 1.552%, while the 2-year yield rose to 0.515%, the highest level since March 2020.
The US dollar lost value against major currencies on Wednesday after the Bank of Canada launched a series of much-anticipated policy comments from the central bank on an aggressive note. read more
The moves broke the calm that had descended on currency markets this week, sending the US dollar index down 0.101% to 93,858.
Safe-haven gold prices rose during seesaw trading, supported by a decline in US bond yields and a weaker dollar, although strong risk taking in equity markets kept the bullion’s gains in check.
Spot gold was up 0.21% to $1,796.48 an ounce, after falling sharply in the previous session.
Oil prices fell after US crude inventories rose more than expected, even as fuel inventories fell and tanks at the country’s largest storage center continued to run out. read more
Brent oil futures fell 2.1% to $84.58 a barrel, while US West Texas Intermediate (WTI) crude fell 2.4% to $82.66 a barrel.
Reporting by Chibuike Oguh in New York; Edited by David Evans and Sonya Hepinstall
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