Thursday 7 July 2016

U.S. Stocks Fluctuate as Oil Falls; Treasuries Slide With Gold



U.S. stocks fluctuated, slowing an advance in global equities, as crude slid toward $46 a barrel on renewed concern of an oversupply in America. Treasuries fell with gold amid easing demand for haven assets before tomorrow’s U.S. payrolls report.
The S&P 500 Index erased gains as crude sank after government data showed inventories fell less than anticipated in the past week. European shares rose for the first time in four days, while emerging-market equities climbed the most in a week. Treasuries slipped, pushing yields higher from unprecedented lows, while a rally in gold faltered.

As global financial markets continued to weigh the fallout from Britain’s shock decision to secede from the European Union, attention is shifting to Friday’s U.S. jobs report for clues on the Federal Reserve’s next policy decision. The central bank mentioned concern that job creation was faltering at its last meeting, though the latest data on signaled the U.S. economy may have been gaining speed before the U.K. vote.
“The markets are gyrating, but I think this is just the post-Brexit environment and we’re looking for where the new equilibrium levels are and we haven’t found them yet,” said Kevin Caron, a Florham Park, New Jersey-based market strategist and portfolio manager who helps oversee $180 billion at Stifel Nicolaus & Co. “This is a theme that may stay with us for a while; stock markets aren’t cheap, by definition the bond market isn’t cheap, and globally the economy is struggling.”
Credit:Bloomberg 

No comments: