By Marc Jones and Pete Schroeder <\/p>\n
LONDON\/WASHINGTON, Sept 10 (Reuters) – U.S. stocks fell and yields rose on Thursday following another rise in key U.S. inflation data that added to market anxiety, while the ECB lifted its interest \u200crates for a second time this year and the U.S. and Iran clashed in the Strait of Hormuz. <\/p>\n
Oil prices \u200cremained a concern for investors after Brent crude climbed above $100 a barrel on Wednesday for the first time since July, raising fears of renewed inflation pressure just \u200bas bond yields in major economies hover near multidecade highs. <\/p>\n
Wall Street declined again with the Dow Jones Industrial Average and S&P 500 off 0.6% and the Nasdaq Composite down 0.65%. MSCI’s gauge of stocks worldwide was down 0.66%. <\/p>\n
The European Central Bank’s decision to raise its key interest rate to 2.50% from 2.25% on Thursday came as little surprise given the recent signals, and barely moved the region’s stock \u200cmarkets [.EU] and the euro. <\/p>\n
Germany’s 10-year bond yield \u2060rose 5 basis points to 3.50%, the highest since the heat of the euro zone crisis in April 2011, while France’s OAT yield was at another post-2008 high of 4.33%. <\/p>\n
Away from the euro zone, \u2060Britain’s 10-year yields surpassed post-2007 highs at 5.39% and benchmark 10-year U.S. Treasury yields ticked up to 4.96%. <\/p>\n
Investors were also digesting signs of looser U.S. fiscal policy after President Donald Trump promised to pay every U.S. adult a $5,000 “Trump dividend” if his party wins November’s congressional elections. The \u200bTreasury \u200bDepartment had also announced a $6 billion buyback of longer-dated U.S. bonds that \u200bdisappointed some investors. <\/p>\n
Heading into Thursday’s Producer Price Index report, \u200ca majority of economists polled by Reuters expected the Fed to hold interest rates steady at its September 15-16 meeting and for the rest of this year, but those expectations swung to a rise in rates this month with the release of another firm report. Attention will now turn to Friday’s U.S. consumer price update. <\/p>\n
OIL PRESSURE <\/p>\n
In the commodity markets, Brent crude futures jumped another 7% to $108.64 a barrel amid the re-escalation of the Iran war and as traders grappled with the prospect of yet more inflationary pressure. [O\/R] <\/p>\n
“I \u200cthink that Brent pushing through the $100 level will be seen by many \u200bin the market as a significant event in the current scheme of things,” \u200bsaid Nick Twidale, chief market strategist at ATFX Global. <\/p>\n
Twidale \u200bsaid traders who had been holding off in hopes of a Middle East peace deal may now “hit \u200cthe trigger as the realities of a longer conflict \u200bkick in.” <\/p>\n
Investor attention will stay on \u200bthe bond market. After the global selloff pushed 30-year yields to their highest level since 2007, Treasury Secretary Scott Bessent in August said that the government would increase buybacks of longer-dated bonds. <\/p>\n
“Bessent has laid down the gauntlet to a \u200bgroup of sophisticated traders who don’t like to \u200cbe told what to do,” said Matt Simpson, senior market analyst at StoneX. <\/p>\n
“He may win a battle or \u200btwo, but he’ll only win the war if bond traders let him.” <\/p>\n
(Reporting by Marc Jones and Pete Schroeder; \u200bEditing by Elaine Hardcastle, Joe Bavier, Colin Barr and Edmund Klamann) <\/p>\n","protected":false},"excerpt":{"rendered":"By Marc Jones and Pete Schroeder LONDON\/WASHINGTON, Sept 10 (Reuters) – U.S. stocks fell and yields rose on…\n","protected":false},"author":2,"featured_media":766813,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[36084,44019,84,32616,59,814,56,54,55],"class_list":["post-766812","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bond-yields","tag-brent-crude","tag-business","tag-ecb","tag-gb","tag-interest-rates","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/766812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=766812"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/766812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/766813"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=766812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=766812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=766812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}