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GLOBAL MARKETS-Stocks dip on lukewarm data; oil falls

Published 2020-08-14, 03:41 p/m
© Reuters.
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* China, U.S. data misses expectations

* Travel stocks sink on British quarantine move

* U.S.-China trade deal review planned for Saturday postponed

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E (Updates prices, changes comment, dateline; previous LONDON)

By Rodrigo Campos

NEW YORK, Aug 14 (Reuters) - Stocks dipped on Friday as data out of China, the euro zone and the United States put a lid on expectations for a sustained global rebound, with traders already worried about a delay in U.S. fiscal stimulus.

European shares were weighed further by a hit to travel stocks after Britain added more European countries, including France, to its quarantine list amid the coronavirus pandemic. pan-European STOXX 600 .STOXX was down 1.20%, although still on track to gain for a second straight week.

On Wall Street, a slowdown in retail sales growth last month and concern over further reluctance by consumers weighed on stocks, with the main indexes down, though not far from record highs.

"The economy remains on life support and Congress going on recess is bad news for large parts of the economy," Edward Moya, New York-based senior market analyst at OANDA, wrote in an afternoon note. "Stocks will not selloff due to the extraordinary policy support that central banks and governments have put in place."

The Dow Jones Industrial Average .DJI fell 53.66 points, or 0.19%, to 27,843.06, the S&P 500 .SPX lost 9.69 points, or 0.29%, to 3,363.74 and the Nasdaq Composite .IXIC dropped 58.59 points, or 0.53%, to 10,983.92.

MSCI's world index .MIWD00000PUS shed 0.43%, drifting further from all-time highs touched in February. The index has still rallied close to 50% from March's trough despite the pandemic.

The euro zone reported the biggest drop it ever recorded in employment in the second quarter. Data also confirmed a record fall in gross domestic product last quarter and a widening in the euro zone's trade surplus with the rest of the world. showing a slower-than-expected rise in Chinese industrial production and a surprise fall in retail sales put Asian shares on the defensive. broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2%, although shares in Japan .N225 rose 0.2% and Chinese shares .CSI300 rose 1.5% in choppy trade.

Yields on U.S. Treasuries dipped but remained elevated after an auction of 30-year bonds on Thursday met weak demand.

Benchmark 10-year notes US10YT=RR last rose 2/32 in price to yield 0.711%, from 0.716% late on Thursday.

A review of the U.S.-China trade deal initially slated for Saturday will be delayed due to scheduling issues and no new date has been agreed upon, according to sources familiar with the plans. ticked lower and was on track for its steepest weekly fall since March, following a string of nine weeks of gains.

Spot gold XAU= dropped 0.6% to $1,940.99 an ounce. Silver XAG= , also on track for a weekly loss after a long string of gains, fell 4.92% to $26.20.

The dollar index was headed for an eighth consecutive week of losses, its longest weekly losing streak in a decade. The index =USD fell 0.153%, with the euro EUR= up 0.19% to $1.1835.

The Japanese yen strengthened 0.34% versus the greenback at 106.56 per dollar, while Sterling GBP= was last trading at $1.3087, up 0.18% on the day.

Oil edged further below $45 a barrel, giving up some of this week's gain, under pressure from doubts about demand recovery due to the COVID-19 pandemic and rising supply.

U.S. crude CLc1 recently fell 0.28% to $42.12 per barrel and Brent LCOc1 was at $44.86, down 0.22% on the day.

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http://tmsnrt.rs/2egbfVh Emerging markets

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