Breaking News
0

GLOBAL MARKETS-Dollar hits five-month high, political risk jolts Italian markets

Stock MarketsMay 16, 2018 14:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
GLOBAL MARKETS-Dollar hits five-month high, political risk jolts Italian markets

* US 10-yr yield holds above 3 pct after surge

* Italian markets jolted by 5-Star, League coalition proposals

* Wall St gains, small-cap Russell hits record

* Dollar extends rally, euro weak

By Lewis Krauskopf

NEW YORK, May 16 (Reuters) - Italy's borrowing costs jumped on Wednesday and the country's stocks slid after reports that the two parties seeking to form Italy's next government might seek debt forgiveness, while the U.S. dollar rallied further to a five-month high.

Wall Street's main stock indexes gained, with the Russell 2000 small-cap benchmark .RUT hitting an intraday record high.

Investors were digesting Tuesday's surge in U.S. bond yields on the heels of a retail sales report that fueled the dollar and hurt stocks.

The benchmark 10-year yield held well above 3 percent after bursting through key technical levels on Tuesday.

“The combination of higher oil prices, higher dollar and stronger yields are starting to potentially weigh on investor sentiment,” said Katie Nixon, chief investment officer for wealth management division of Northern Trust (NASDAQ:NTRS) in Chicago.

“As yields go up, they start to be a little bit more competitive with risk assets and with stocks in particular.”

The Dow Jones Industrial Average .DJI rose 74 points, or 0.3 percent, to 24,780.41, the S&P 500 .SPX gained 13.39 points, or 0.49 percent, to 2,724.84 and the Nasdaq Composite .IXIC added 51.07 points, or 0.69 percent, to 7,402.70. of U.S. retailers .SPXRT rose after results from department store chain Macy's (NYSE:M) M.N . Russell 2000 was up 1.1 percent and set its first intraday record high since Jan. 24.

In Italy, investors seized on a report that the anti-establishment 5-Star Movement and the far-right League party plan to ask the European Central Bank to forgive 250 billion euros ($296 billion) of Italian debt, according to a draft the parties are working on. stocks .FTMIB tumbled 2.3 percent while Italy's 10-year bond yield jumped nearly 19 basis points to 2.13 percent IT10YT=RR . right to resonate with markets because it tells you about the sense of the wisdom between these negotiating parties," said Chris Scicluna, head of economic research at Daiwa Capital Markets.

Other major European stock markets were higher, and the pan-European FTSEurofirst 300 index .FTEU3 rose 0.19 percent, supported by the weaker euro. gauge of stocks across the globe .MIWD00000PUS gained 0.26 percent.

North Korea threw next month's summit between Kim Jong Un and U.S. President Donald Trump into doubt by saying it may reconsider if Washington insists it unilaterally gives up its nuclear weapons. have gotten sort of used to this. Whether we are talking about North Korea or the trade discussions with China ... I think investors are recognizing we are at the beginning of the beginning of this, so it's not anything to make dramatic portfolio moves or any significant bets on,” Nixon said.

U.S. Treasury yields were little changed with the 10-year yield hovering near a seven-year high. 10-year notes US10YT=RR last fell 2/32 in price to yield 3.0853 percent, from 3.08 percent late on Tuesday.

The dollar index .DXY , which measures the greenback against a basket of six other currencies, rose 0.13 percent to 93.340 after rising to 93.632 during the session, its highest since mid December. The euro EUR= was down 0.27 percent to $1.1805. crude CLcv1 fell 0.25 percent to $71.13 per barrel and Brent LCOcv1 was last at $78.71, up 0.36 percent on the day. GRAPHIC-Global assets in 2018

http://tmsnrt.rs/2jvdmXl GRAPHIC-Emerging markets in 2018

http://tmsnrt.rs/2ihRugV GRAPHIC-MSCI All Country World Index Market Cap

http://tmsnrt.rs/2EmTD6j GRAPHIC-World FX rates in 2018

http://tmsnrt.rs/2egbfVh

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

GLOBAL MARKETS-Dollar hits five-month high, political risk jolts Italian markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email