Equities sell off sharply, Treasury yields drop with economic data in focus
Manufacturing data subdued, US jobs report in focus
Global stock index falls, dollar hits two-week high
Yen gains as BOJ seen continuing rate hikes
Updated prices after U.S. stock market close
By Sinéad Carew and Yoruk Bahceli
Sept 3 (Reuters) -MSCI's gauge of global equities fell sharply on Tuesday, with Wall Street stocks taking their biggest hit since early August while U.S. Treasury yields fell after manufacturing data spurred worries about the economy.
Investors were also waiting anxiously for the monthly U.S. jobs report due later in the week, as it is expected to shed more light on the health of the American economy and influence how swiftly the Federal Reserve cuts rates.
Oil sold off sharply and prices settled at their lowest level since Dec. 12 on expectations of an imminent deal to resolve a dispute that has halted Libyan production and exports following a U.N.-brokered meeting between rival factions.
Elsewhere in commodities, copper prices slumped to their lowest in more than two weeks, on concerns that a weak Chinese economy is curbing demand.
Wall Street indexes extended earlier losses after U.S. manufacturing data pointed to subdued factory activity while it edged up last month from an eight-month low in July with some improvement in employment.
"Investors woke up this morning to see a mixed economic report. They saw economically sensitive commodities like oil and copper falling. Also, there's still a hangover from the tech weakness last week," said Gene Goldman, chief investment officer at Cetera Investment Management, El Segundo, California.
"Take all this together and it leads to an opportunity for profit taking, especially with stocks near record highs," said Goldman, also citing jitters that September is typically the weakest month of the year with concerns exacerbated by the looming U.S. presidential election in early November.
Investors are also waiting anxiously for Friday's August U.S. jobs report, which is expected to help determine whether the Fed cuts rates by 25 basis points or 50 on Sept. 18.
"Investors are wondering are we heading into a recession quicker than was thought or does the Fed have this under control with rate cuts going forward," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut, adding that the manufacturing data "certainly didn't help."
Adding to volatility was the fact that many investors were back from summer vacations and a long weekend as U.S. markets were closed for the Labor Day holiday on Monday.
On Wall Street all three major indexes suffered their biggest daily declines since Aug. 5.
The Dow Jones Industrial Average .DJI fell 626.15 points, or 1.51%, to 40,936.93; the S&P 500 .SPX lost 119.47 points, or 2.12%, to 5,528.93; and the Nasdaq Composite .IXIC lost 577.33 points, or 3.26%, to 17,136.30.
MSCI's gauge of stocks across the globe .MIWD00000PUS fell 13.60 points, or 1.63%, to 819.44, also showing its biggest one-day drop since Aug. 5.
Earlier Europe's STOXX 600 .STOXX index had closed down close to 1%.
In currencies, the dollar hovered near a two-week high against the euro as traders braced for a data-heavy week, including Friday's U.S. payrolls report.
The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, gained 0.13% to 101.79.
The euro EUR= was down 0.28% at $1.104.
Against the Japanese yen JPY=, the dollar weakened 0.82% to 145.69 after media reports that cited the Bank of Japan governor reiterating in a document submitted to a government panel on Tuesday that the bank would keep raising interest rates if the economy and inflation performed as currently expected.
U.S. Treasury yields were mostly lower, with the benchmark 10-year note on track to snap a five-session streak of gains, after the soft manufacturing sector data.
The yield on benchmark U.S. 10-year notes US10YT=RR fell 6.5 basis points to 3.846%, from 3.911% late on Friday while the 30-year bond US30YT=RR yield fell 5.9 basis points to 4.1373%.
The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations, fell 4.7 basis points to 3.8796%, from 3.927% late on Friday.
In energy markets, U.S. crude CLc1 settled down 4.4% at $70.34 a barrel and Brent LCOc1 ended at $73.75 per barrel, down 4.9% on the day.
Copper CMCU3 lost 2.12% to $8,988.00 a tonne. Three-month aluminum on the London Metal Exchange CMAL3 fell 0.35% to $2,415.50 a tonne.
Gold prices eased to their lowest in more than a week pressured by a firm dollar, while investors awaited economic data that could determine the size of U.S. rate cuts.
Spot gold XAU= lost 0.31% to $2,491.39 an ounce. U.S. gold futures GCc1 fell 0.27% to $2,487.10 an ounce.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Sinéad Carew, Yoruk Bahceli and Tom Westbrook; Editing by Shri Navaratnam, Kim Coghill, Toby Chopra, Ed Osmond and Andrea Ricci
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
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.