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Stock Recovery Falters; Yen Rallies With Havens: Markets Wrap

U.S. equities dipped with European shares following a downswing in Asia. Assets seen as safe havens as last week’s surge in volatility continues to hang over markets. The dollar fell for a third straight day and 10-year Treasury yields declined after touching a four-year high Monday. The yen headed for the strongest close since November 2016 and the Swiss franc with gold. The U.S. equity retreat was broad, with just one stock gaining for every four years in the S & P 500. Oil slumped and the Cboe Volatility Index crept higher. A jump in global equities yesterday, capping the S & P 500’s best two-day performance in 18 months, was not enough to put trades in mind at ease as the volatility that wiped $ 2 trillion from U.S. stocks last week has come to an end. Consumer-price data due Wednesday could give some clues Where are we heading, given that we are coming from the outlook for inflation.

Brian Reynolds, a strategist at Canaccord, is one of the most successful investors in the market. “These choppy periods can be compared to buybacks that are rampant up their sales compared to skittish investors,” he wrote in a note to customers. Hedge funds and other large speculators have boosted bets on the future, they expect the 2018 bond market will resume in the days ahead. Investor at Goldman Sachs Asset Management Warned 10-year yield could be as high as 3.5 percent in the next six months as a result of Federal Reserve tightening. Elsewhere, South Africa ‘s Rand fluctuated as president Jacob Zuma refused to obey his ruling African National Congress’ s order for him to resign voluntarily. Terminal users can read more in our markets blog.

Here are some important things to watch out for this weekend : Lunar New Year Celebrations for the Year of the Dog, China, Hong Kong, Taiwan, Singapore, Malaysia and Indonesia. Chinese mainland markets are closed Feb. 15-21. India is out Tuesday for a public holiday. The U.S. consumer-price index probably increased at a moderate pace in January, economists project. Retail sales in the U.S., also on Wednesday, probably increased for a fifth straight month. Japan is expected to extend the longest stretch of economic growth since the mid-1990s. Bungee, TripAdvisor, SunPower, Con Edison, Bombardier, MetLife, Cisco, Japan Post Bank, Credit Suisse, Nestle, Airbus, Allianz, Telstra and Coca-Cola. These are the main moves in markets: stocks The S & P 500 slipped 0.5 percent as of 10:06 a.m. in New York. The Stoxx Europe 600 Index fell 0.4 percent. The MSCI All-Country World Index was little changed. The MSCI Asia Pacific Index added 0.6 percent. Currencies The Bloomberg Dollar Spot Index sank 0.4 percent to the lowest in a week. The euro climbed 0.6 percent to $ 1.2364. The Japanese yen gained 1 percent to 107.61 per dollar. South Africa’s rand dipped 0.4 percent to 11.9824 per dollar. The British pound climbed 0.4 percent to $ 1.3893. Bonds The yield on 10-year Treasuries fell two basis points to 2.84 percent. Germany’s 10-year yield on one point to 0.74 percent. Britain’s 10-year yield rose two basis points to 1.62 percent. Commodities West Texas Intermediate crude fell 1.3 percent to $ 58.54 a barrel. Gold rose 0.2 percent to $ 1,325.40 an ounce. Copper future gained 2.2 percent. – With assistance by Andreea Papuc, Adam Haigh, Chris Anstey, Aleksandra Gjorgievska, Eddie Van Der Walt, Andrew Cinko and Natasha Doff

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