(Bloomberg) – Sign up for Next China, a weekly e-mail about where the nation is and where it is next.
US stocks dropped from record highs when President Donald Trump said he could impose more tariffs on China, reminding investors that the trading slit remains unresolved. Treasuries have fallen and the dollar has risen.
The S & P 500 stopped the five-day rally, with energy producers joining the oil and tech companies, preparing for opposition to Congress. Goldman Sachs Group Inc. jumped to better than expected results in its retail unit, and JPMorgan Chase & Co. rebounded from the losses caused by the disappointing credit outlook. The 10-year Treasury yield has cut back on growth after Federal Reserve Chairman Jerome Powell said the central bank would "act appropriately" against the backdrop of growing uncertainty.
Investors have been locked up in the idea of reducing Fed interest rates this month, even after strong retail sales, a factory and housing data sent on Tuesday for bonds. While Powell's remarks resembled the testimony of US MEPs from 10-11 July, they continued to support the monetary policy mitigation case in the context of uncertainty stemming from Trump's trade policy and slower global growth.
"Trading is a big, big problem," said Dave Campbell, director of BOS based in San Francisco, who runs around $ 4.5 billion. "There are many uncertainties – they are all currently judging the minds of the people."
In other places, the euro has fallen, as investor confidence in Germany's economic prospects has fallen. Despite Britain's high salaries, pounds fell on Brexit's new worries. Oil has suffered a loss of less than $ 60 a barrel with the prospect of alleviating tensions between the United States and Iran by OPEC, after the Mexican Gulf producers began resuming operations after a storm.
Here are some key events:
Bank of America Corp. and Taiwan Semiconductor are among the companies that need to report on results this week. Monetary policy decisions are expected in Indonesia, South Korea and South Africa on Thursday.
These are the main market movements:
The S & P 500 fell 0.3 percent to 3.005.38 at 15:10. The Stoxx Europe 600 index rose 0.4 percent. The MSCI Asia Pacific Index declined by 0.2%.
The Bloomberg index for the dollar increased by 0.4%. The euro fell 0.4 percent to 1.1209 dollars. The British pound fell 0.8 percent to 1.2411 dollars. The yen fell by 0.4% to 108.29 per dollar.
The 10-year government bond yield rose three basis points to 2.12%. Germany's ten-year yield rose by one basis point to -0.24%. Britain's ten-year yield rose two basis points to 0.821 percent.
The Bloomberg Commodity Index fell 1.2%. Western Texas Intermediate Crude Oil sank to 57.62 dollars a barrel.
– With the help of Adam Haig, Samuel Potter, Laura Curtis and Jacob Petersel.
To contact reporters on this story: Rita Nazareth in New York at firstname.lastname@example.org, Vildana Hajric in New York at email@example.com
To contact the editors responsible for this story: Jeremy Heron at firstname.lastname@example.org, Rita Nazareth
<p class = "canvas-atom canvas-text Mb (1.0e) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For more articles like this, bloomberg.com"data-reactid =" 36 "> For more articles like this, please visit us at bloomberg.com
© 2019 Bloomberg L.P.