The dollar weakened and Treasury yields fell on Tuesday as data showing a decline in sales of new single-family homes in the US in July opened its doors. to a less aggressive outlook from the Federal Reserve at its Jackson Hole symposium on Friday.
* Gold ended a six-game losing streak, while Wall Street remained little changed by hopes the Fed would be more accommodative after data showed U.S. private sector trading activity slowed the contraction for the second consecutive month in August. , playing a minimum of 18 months.
* “The data points to a significant contraction, showing that the economy has weakened rapidly, which opens the door to the idea that the Fed may not be as aggressive,” said Edward Moya, principal analyst at OANDA.
* At 16:06 GMT on Wall Street, the Dow Jones Industrial Average fell 132.68 points, or 0.41%, to 32,933.40; the S&P 500 index fell 1.38 points, or 0.04%, to 4,136.07; and the Nasdaq Composite was up 20.33 points, or 0.16%, to 12,403.49.
* The dollar index fell 0.633% and the euro rose 0.46% to $ 0.9987. Bond yields fell from multi-weekly highs after data showed signs of an economic slowdown.
* 10-year bond yields fell 3.7 basis points to 2.9980%, below 3%.
* Previously, the euro hit its lowest level in two decades after news of a contraction in economic activity in the euro zone for the second straight month in August, while the war in Ukraine should maintain the gloomy outlook for the country. European economy.
* The yuan weakened to a two-year low and the pound briefly hit its lowest level since March 2020 in favor of the dollar.
* The MSCI World Stock Index fell 0.08% and the pan-European STOXX fell 0.4% after falling for nearly a week. The benchmark is 11% lower than the all-time high of January 4th.
* Asian equities fell for the seventh consecutive session after another rebound in energy prices in Europe fueled recession fears and pushed bond yields higher, while the euro hit a 20-year low.
* China’s stock lost 0.5% as the yuan fell to its nearly two-year low. The Nikkei fell 1.2% after a PMI survey showed factory activity in Japan slowed to a 19-month low in August.
Prices rose more than 3% after Saudi Arabia warned that the OPEC + producer alliance could cut production.
