Stocks lose ground, Treasury yields climb after inflation data



By Sinéad Carew

NEW YORK, Aug 11 (Reuters) - The S&P 500 and Nasdaq finished in the red while Treasury yields rose as investors digested signs of cooling U.S. inflation and hopes the Federal Reserve could slow interest rate hikes against warnings that the battle with rising prices was far from over.

Thursday's data showed U.S. producer prices (PPI) unexpectedly fell in July amid a drop in the cost of energy products. This followed Wednesday's surprise news that consumer prices (CPI) were unchanged in July due to a drop in gasoline prices.

U.S. Treasury yields rallied after dropping sharply earlier.

Two straight days of slower inflation data gave investors some hope that soaring prices were finally "peaking and heading in the right direction," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

But Saluzzi cautioned that this was a "one month data point."

"You'd still like to see a trend next month and see it's not necessarily just energy. You want to see other prices coming down. It's still early in the game," Saluzzi added.

After adding more than 2% on Wednesday and rising more than 1% to a three-month high earlier on Thursday, the S&P turned red in afternoon trading and Nasdaq turned negative.

"It was a better CPI print (Wednesday) than expected and a better PPI print (Thursday) morning than forecasted by analysts. So it fit that theme, that peak inflation has occurred as energy continues to decline," said George Catrambone, head of Americas trading at DWS Group. "But I would be concerned about a head fake."

The Dow Jones Industrial Average .DJI rose 27.16 points, or 0.08%, to 33,336.67, the S&P 500 .SPX lost 2.97 points, or 0.07%, to 4,207.27 and the Nasdaq Composite .IXIC dropped 74.89 points, or 0.58%, to 12,779.91.

The pan-European STOXX 600 index .STOXX closed up 0.06% and MSCI's gauge of stocks across the globe .MIWD00000PUS finished up 0.07%.

Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas, expects the Fed to be cautious about slowing the tightening cycle until inflation shows more improvement.

"The Fed's learned their lesson. They're not going to take their foot off the brakes until it's obvious to everybody that inflation is returning to their 2% target," Phipps said.

San Francisco Fed President Mary Daly, in an interview with the Financial Times, earlier said that it was far too early for the central bank to declare victory in its fight against inflation and that a half-percentage point rate rise in September was her baseline.

Daly's comments followed similar cautions from Minneapolis Federal Reserve Bank President Neel Kashkari and Chicago Fed President Charles Evans on Wednesday.

The dollar, which fell 1% on Wednesday on the prospect of a more dovish Fed, pared losses on Thursday after likely gaining some support from the Fed officials' commentary.

In Treasuries, 10-year note US10YT=RR yields hit a more than two-week high as investors in that market bet that the Fed would press on with rate hikes since inflation, while showing signs of abating, remained high.

"Even if they're seeing slowing inflation and a slowing of the economy, they will still hike rates. Why? Because inflation still has an 8% handle on it. It's still far too high," said Padhraic Garvey, regional head of research, Americas at ING.

Benchmark 10-year notes US10YT=RR last fell 29/32 in price to yield 2.8839%, from 2.781% late on Wednesday. The 30-year bond US30YT=RR last fell 78/32 in price to yield 3.1716%, from 3.042%.

The dollar index =USD fell 0.114%, with the euro EUR= up 0.24% to $1.0322.

The Japanese yen weakened 0.09% versus the greenback at 133.04 per dollar, while Sterling GBP= was last trading at $1.2196, down 0.24% on the day.

In commodities, oil settled higher after the International Energy Agency raised its oil demand growth forecast for 2022 as soaring natural gas prices lead some consumers to switch to oil.

U.S. crude CLc1 settled up 2.6% at $94.34 per barrel and Brent LCOc1 finished at $99.60, up 2.3% for the day.

Spot gold XAU= dropped 0.3% to $1,787.61 an ounce.



World FX rates YTD Link
Global asset performance Link
Fed funds futures Link
Dollar Link



Additional reporting by Herbert Lash, Karen Brettell, Huw
Jones, Sujata Rao, Stella Qiu and Alun John; Editing by Elaine
Hardcastle, Will Dunham, David Holmes and John Stonestreet



免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示:您的資金存在風險。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明