U.S. stocks retreat, bonds rise as dollar slips
- Author: Zachary Reyes Mar 25, 2017,
Mar 25, 2017, 5:00
The dollar index, which measures the greenback against a basket of six major rivals, was last down 0.2 percent at 99.634 after hitting a almost seven-week low of 99.609 earlier.
"The current and ongoing breakdown in the US dollar is representative, driving some short-term and nascent deleveraging of legacy "reflation" trades, with DXY through the psychological 100 level", said Charlie McElligott, managing director and head of USA cross-asset strategy at RBC Capital Markets.
The dollar index, which tracks the greenback against a basket of six trade-weighted peers, recovered about 0.1 percent to 99.81, after touching a seven-week low overnight.
The cautious mood stoked demand for gold, USA government debt, and the Japanese yen, with spot gold prices touching a three-week high of $1,250.51 an ounce and the dollar hitting a four-month low against the yen of 110.76 yen.
GBP/USD slid 0.32% to trade at 1.2480, off the previous session's one-month peak of 1.2532. Brent crude, used to price worldwide oils, fell 85 cents to $50.11 a barrel.
The greenback has been under pressure after comments from the U.S. Federal Reserve last week disappointed dollar bulls. "Generally, risk sentiment had been undermined off of that".
The pan-European STOXX 600 index was last down 0.6 percent, having earlier dropped as much as 0.9 percent, led lower by banks and miners.
European shares climbed higher on Thursday, led by travel and retail stocks, as investors grew more bullish ahead of a vote in Congress on the US president's healthcare bill.
In the first major legislative battle of his presidency, Trump is trying to rally Republican lawmakers behind a plan to dismantle Obamacare, and investors worry failure could spell trouble for the promised tax cuts and regulatory changes. Auguring a downbeat start for Wall Street, S&P futures fell 0.2 percent while Dow futures also lost 0.3 percent.
Base metals fell on the London Metal Exchange, with copper for delivery in three months down 0.2 percent and nickel retreating 0.7 percent.
Sterling hit high at $1.2532, its highest since February 24, before retreating slightly to trade at $1.2517 In the late U.S. session, up 0.3 percent on the day. On Thursday morning, the USA dollar slipped about 0.1 percent to 30.477 Taiwan dollars.
Gold slipped on Thursday as the dollar firmed, while markets waiting to see if U.S. President Donald Trump can push through a healthcare bill on Friday.
-The British pound traded 1 percent higher to $1.2487 after United Kingdom inflation accelerated more than forecast to break through the Bank of England's target for the first time since 2013.
Ten-year Treasury yields fell below 2.43 percent Tuesday, the lowest in about three weeks, partly reflecting traders scaling back their view on the domestic economy in the absence of any fiscal stimulus this year. US crude settled down 34 cents, or 0.71 percent, at $47.70.