Global stocks fall, US Treasury yields rise ahead of Fed minutes

  • Wall Street stocks are trading lower
  • Oil prices rise slightly
  • Benchmark 10-year yields up
  • Earnings in dollars
  • golden falls

Aug 17 (Reuters) – Global stocks fell and U.S. Treasury yields rose on Wednesday ahead of the release of Federal Reserve meeting minutes that are expected to reveal the extent of the authorities’ aggressive stance on interest rates. interest and inflation.

Minutes from the July meeting, due out on Wednesday, could indicate whether the US central bank is likely to adopt a third straight 75 basis point rate hike at its September meeting to rein in rising inflation. . Read more

Data since the Fed’s last policy meeting showed moderation in consumer prices and other economic indicators, leading traders to expect slower rate increases. US consumer prices remained stable while producer prices fell in July. Read more

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“The previous meeting was ahead of the last consumer price index, which was a slight deceleration, and some data sent warning signals,” said Sean Bandazian, senior investment analyst for Cornerstone Wealth in Charlotte, in North Carolina.

“But we don’t see any meaningful change in Fed policy as long as the labor market and wages remain strong. I think we’ll probably hear that tone in the minutes this afternoon.”

The MSCI gauge of stocks in 50 countries around the world (.MIWD00000PUS) lost 0.94%, while the pan-European STOXX 600 index (.STOXX) lost 0.91%.

US Treasury yields rose ahead of the release of the Fed meeting minutes. Benchmark 10-year notes rose to 2.9041% from 2.824% on Tuesday. The two-year note gained 3.3539% from 3.251%.

On Wall Street, all three major indexes were down, with technology, consumer discretionary and communication services leading the selloff.

The Dow Jones Industrial Average (.DJI) fell 0.82% to 33,870.33, the S&P 500 (.SPX) 1.12% to 4,256.86 and the Nasdaq Composite (.IXIC) fell 1.73%, to 12,875.98.

Oil edged higher, after hitting a six-month low earlier on Wednesday, as markets weighed a bigger-than-expected drop in U.S. crude inventories on rising Russian production and exports. Read more

Brent crude rose 0.35% to $92.02, up a barrel, while U.S. West Texas Intermediate (WTI) crude rose 0.25% to $86.31 a barrel.

The dollar held on to gains against other major currencies as markets waited for clues from the Fed’s minutes. The dollar index rose 0.301%, with the euro falling 0.08% to $1.0162.

Gold prices fell as the dollar rose. Spot gold fell 0.8% to $1,761.82 an ounce, while US gold futures fell 0.20% to $1,769.70 an ounce.

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Reporting by Chibuike Oguh in New York; Editing by Richard Chang and Barbara Lewis

Our standards: The Thomson Reuters Trust Principles.

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