🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

GLOBAL MARKETS-British data prompts global bond selloff; oil rises

Published 2016-10-27, 03:21 p/m
© Reuters.  GLOBAL MARKETS-British data prompts global bond selloff; oil rises
US500
-
DJI
-
BARC
-
DBKGn
-
QCOM
-
CMCSA
-
LCO
-
CL
-
NXPI
-
IXIC
-
GB10YT=RR
-
DE10YT=RR
-
US10YT=X
-
STOXX
-
MIWD00000PUS
-
SPLRCU
-

* Yields on global benchmark bonds pushed higher

* U.S. dollar hits 7 1/2-yr peak vs Swedish crown

* U.S. stocks flat; Comcast drop offset by healthcare

* Oil rises on draw of crude, OPEC comments (Adds settled oil prices; adds bond yields also build on U.S. jobless claims)

By Hilary Russ

NEW YORK, Oct 27 (Reuters) - Strong growth data out of Britain prompted the worst daily selloff in government bond for months and pushed yields on the world's benchmark bonds higher on Thursday, as expectations eased for a Bank of England interest rate cut.

In the United States, equity losses led by Comcast and consumer discretionary stocks offset gains in the healthcare sector, while European stocks slid and the U.S. dollar advanced against the Swedish crown and Japanese yen.

Official data showed that Britain's economy slowed only slightly in the three months after it voted to exit the European Union. It grew by 0.5 percent between July and September, a touch less than the second quarter's 0.7 percent, enough to temper fears about an immediate economic impact following the Brexit decision. 10-year gilt GB10YT=RR was up 12 basis points to yield 1.27 percent, on track for its biggest daily rise since June 2015. DE10YT=TWEB and U.S. equivalents US10YT=RR rose to their highest since early June at 0.19 percent and 1.86 percent, respectively. U.S. government yields were fueled further by upbeat jobless claims data, and were last at 1.85 percent. stronger (gross domestic data) print in the UK has given further weight to speculation that the BoE will not provide further stimulus any time soon," said Rabobank strategist Richard McGuire.

In U.S. equity markets, investors took Qualcomm's deal QCOM.O to buy NXP Semiconductors NXPI.O for about $47 billion as a sign of confidence, sending up shares of both. beating earnings estimates a day earlier, Comcast CMCSA.O pulled the S&P and Nasdaq lower, paring some losses after falling as much as 2.7 percent following price target cuts from Barclays (LON:BARC) and Deutsche Bank (DE:DBKGn). Dow Jones industrial average .DJI fell 11.82 points, or 0.06 percent, to 18,187.51, the S&P 500 .SPX lost 4.15 points, or 0.19 percent, to 2,135.28 and the Nasdaq Composite .IXIC dropped 29.66 points, or 0.56 percent, to 5,220.61. sensitive sectors also struggled as bond yields rose. The S&P real estate sector .SPLRCR was down 2.5 percent and on track for its worst decline in five weeks while utilities .SPLRCU shed 0.4 percent.

Europe's STOXX 600 .STOXX slipped 0.01 percent, with defensive sectors such as healthcare and utilities providing the biggest boost to the index, underscoring investor caution.

The MSCI all-country world stock index .MIWD00000PUS was down 0.33 percent.

The U.S. dollar hit its highest in more than seven and a half years against the Swedish crown after dovish comments from Sweden's central bank, and a three-month high against the yen on expectations for a December Federal Reserve rate hike. dollar extended gains during the day, last up 1.82 percent against the Swedish crown at 9.0702 crowns SEK= , after touching 9.0890, its highest level since early March 2009.

Oil prices edged higher on a reported drop in U.S. crude oil inventories, and as commitments from Gulf OPEC members assuaged doubts in the market about cooperation from other producers. crude CLc1 settled up 1.10 percent, or 54 cents, at $49.72 a barrel, while Brent crude LCOc1 added 44 cents, or 84 percent, to $50.40.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.