{"id":126758,"date":"2018-05-16T06:50:35","date_gmt":"2018-05-16T10:50:35","guid":{"rendered":"http:\/\/countingpips.com\/?p=126758"},"modified":"2018-06-01T15:39:46","modified_gmt":"2018-06-01T15:39:46","slug":"stocks-pull-back-as-bond-yields-rise","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/05\/stocks-pull-back-as-bond-yields-rise\/","title":{"rendered":"Stocks pull back as bond yields rise"},"content":{"rendered":"
May 16, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

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Dow snaps eight-session win streak<\/h2>\n<\/div>\n<\/div>\n

US stocks\u00a0<\/b>retreated Tuesday as 10-year Treasury yield breached above the 3% threshold. The\u00a0S&P 500\u00a0<\/em>ended 0.7% lower at 2711.45. Ten of 11 main sectors ended in negative territory.\u00a0Dow Jones\u00a0<\/em>industrial average lost 0.8% to 24706.41 after eight-session win streak. The\u00a0Nasdaq\u00a0<\/a>composite index fell 0.8% to 7351.63. The dollar strengthening accelerated: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, rose 0.6% to 93.233 and is down currently. Stock indices futures indicate higher openings today.<\/p>\n

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Stocks fell as Treasury yields rose on expectations the Federal Reserve\u2019s monetary tightening and rising budget deficit will push interest rates higher, negatively affecting corporations\u2019 earnings outlook as borrowing costs rise. Positive economic data failed to prevent the market pullback: retail sales rose for a second straight month in April, and the Empire State manufacturing index rose in May, both indicating accelerating economy.<\/p>\n<\/div>\n<\/div>\n

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European stocks recover on positive data<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>recovered Tuesday in volatile trading helped by positive data and earnings reports. The\u00a0British Pound<\/em>joined\u00a0euro\u2019s\u00a0<\/em>accelerated slide against the dollar with both currencies gaining currently. The Stoxx Europe 600 added 0.1%. The German\u00a0DAX 30\u00a0<\/a>lost 0.1% to 12970.04. France\u2019s\u00a0CAC 40<\/em>\u00a0rose 0.2% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>gained 0.2% to 7722.98. Markets opened mixed today.<\/p>\n

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The preliminary reading of 0.4% GDP growth in the euro-zone was confirmed, in line with expectations. Bigger than expected slowdown of German economy weighed on DAX: Q1 GDP slowed to 1.2% from 2.5% in the fourth quarter of last year.<\/p>\n<\/div>\n<\/div>\n

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Asian indices down<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly lower today after weak Japanese data and North Korea said it would reconsider a summit with President Trump next month if the US demands denuclearization.\u00a0Nikkei\u00a0<\/em>lost 0.4% to 22717.23 as Q1 GDP shrank 0.6% over year and yen rose against the dollar. Chinese stocks are mixed: the\u00a0Shanghai Composite Index\u00a0<\/em>is down 0.7% and Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is flat. Australia\u2019s All Ordinaries Index is up 0.2% despite Australian dollar\u2019s climb against the greenback.<\/p>\n

\"AU200\"<\/p>\n

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Brent\u00a0<\/a>slips<\/h2>\n<\/div>\n<\/div>\n

Brent futures prices\u00a0<\/b>are lower today ahead of US inventory report as traders expect US inventories rose last week. The American Petroleum Institute late Tuesday report indicated US crude inventories rose unexpectedly by 4.9 million barrels last week. Prices ended higher yesterday on rising Middle East tensions: July Brent gained 0.3% to $78.43 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Dow snaps eight-session win streak US stocks\u00a0retreated Tuesday as 10-year Treasury yield breached above the 3% threshold. The\u00a0S&P 500\u00a0ended 0.7% lower at 2711.45. Ten of 11 main sectors ended in negative territory.\u00a0Dow Jones\u00a0industrial average lost 0.8% to 24706.41 after eight-session win streak. The\u00a0Nasdaq\u00a0composite index fell 0.8% to 7351.63. The dollar strengthening accelerated: the\u00a0live […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-126758","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/126758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=126758"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/126758\/revisions"}],"predecessor-version":[{"id":126763,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/126758\/revisions\/126763"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=126758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=126758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=126758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}