Stocks edge lower, oil jumps on supply concerns over Mideast, Libya
S&P 500, Nasdaq indexes trade lower
Nikkei slips as yen climbs
Markets imply nearly 40% chance Fed cuts by 50 bps
Oil gains as Libya shuts production, Israel-Hezbollah spar
Updates lede and prices throughout, adds analyst comment
By Chibuike Oguh and Dhara Ranasinghe
NEW YORK/LONDON, Aug 26 (Reuters) -World equity markets edged lower on Monday as markets digested the likelihood ofU.S. interest rates being loweredsoon, even as oil prices jumped amidincreased tensions in the Middle East.
The benchmark S&P 500 index .SPX and the Nasdaq .IXIC gave up early gains and traded lower, while the Dow .DJI climbed. Europeanshares .STOXX finished slightly down, withtrading subdued in the London market, which is closedfor a public holiday. Japan's blue-chip Nikkei stock index closed down almost 0.7% .N225 as the yen firmed.
The Dow Jones Industrial Average .DJI rose 0.07% to 41,205.49, the S&P 500 .SPX lost 0.30% to 5,617.52 and the Nasdaq Composite .IXIC lost 0.79% to17,736.98. MSCI's gauge of stocks across the globe .MIWD00000PUS fell 0.18% to 829.87.
Israel and Hezbollah traded rocket salvos and airstrikes on Sunday, stirring worries about possible oil supply disruptions if the conflict escalated.
Crude prices were also buoyed byLibya's eastern-based government announcement of the closure of all oil fields on Monday, which haltedproduction and exports.
Brent crude LCOc1 traded up 2.7% to $81.15 per barrel and West Texas Intermediate CLc1 rose 3.18% to $77.21 per barrel.
"The market is digesting a lot of news: obviously there was a rally on Friday on (Federal Reserve Chair Jerome) Powell's comments and we thought durable goods orders come in good," said Ben McMillan, principal and chief investment officer at IDX Insights in Tampa, Florida.
"Historically rate cuts have actually preceded equity market weakness because rates are being cut for a reason."
New orders for long-lasting, U.S.-made goods USDGN=ECI, items ranging from toasters to aircraft meant to last three years or more, surged by 9.9% last month, marking a solid rebound from a decline in June and beating analyst expectations, Commerce Departmentdata showed.
In a highly-anticipated speech to the Jackson Hole symposium on Friday, Powell said the time had come to start easing policy and emphasised the central bank did not want to see further weakening in the labour market.
European Central Bank chief economist Philip Lane struck a more cautious note in his Jackson Hole speech, saying the central bank was making "good progress" in cutting euro zone inflation back to its 2% target, but success was not yet assured.
The yield on benchmark U.S. 10-year notes US10YT=RR rose 0.3 basis points to 3.81%. The two-year note US2YT=RR yield, which typically moves in step with interest rate expectations, rose 1 basis point to 3.9231%.
Fed fund futures 0#FF: are fully priced for a quarter-point cut at the September 18 meeting, and imply a 39.5% chance of a 50 bps move. The market also has 103 bps of easing priced in for this year and another 122 bps in 2025. FEDWATCH
The ECB has already started cutting rates, with a 25 bps reduction in July, with a further two quarter point reductions priced in by year-end.
"I think it's more likely than not that we're going to see 75 bps cut this year. And the market has some potential readjustment for less rate cuts than is being priced in," McMillan said.
NVIDIA AWAITED
Investors are also eyeing the latestearnings from AI powerhouse NvidiaNVDA.O, which reports on Wednesday to sky-high market expectations. The stock is up some 160% year-to-date, accounting for around a quarter of the S&P 500's 18% year-to-date gain.
"The big thing this week is really Nvidia more than any of the macro stuff. I think folks are really focused on Nvidia because that's been kind of the bellwether for the risk-on trade this year," McMillan added.
Also in focus are U.S personal consumption and core inflation data due on Friday, along with a flash reading on European Union inflation. Analysts generally assume the data will be benign enough to allow for rate cuts in September.
The Japanese yen rose to a three-week high against the U.S. dollar, while the greenback rallied from an eight-month low. The dollar dropped to a three-week low against the yen of 143.45 JPY=EBS but pared losses and was last slightly up 0.08% at 144.5.
The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, gained 0.18% at 100.84, with the euro EUR= down 0.21% at $1.1167.
Gold prices firmed, nearing the recent record high on safe-haven demand. Spot gold XAU= rose0.14% to $2,513.79 an ounce. U.S. gold futures GCc1 gained 0.28% to $2,515.50 an ounce.
Reporting by Chibuike Oguh in New York, Dhara Ranasinghe in London; Editing by Mark Potter, Nick Zieminski and Marguerita Choy
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
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.