Stocks and commodities drop on Fed, growth worries - BNN

Stocks fluctuated, with Friday’s options expiration contributing to the heightened market swings. Traders also cited concern over the withdrawal of Federal Reserve stimulus and anxiety about the coronavirus spread and global supply chains.

The S&P 500 swung between gains and losses, while the Cboe Volatility Index was on track for its biggest weekly surge since January. The rout in Chinese companies listed in the U.S. deepened after the industry was hit with a fresh round of proposed regulations, with Alibaba Group Holding Ltd. and Baidu Inc. tumbling. Macy’s Inc. jumped after the department-store operator reinstated its dividend and raised its sales guidance.

Investors are bracing for the withdrawal of unprecedented liquidity as the developed world looks to mass vaccinations to keep the recovery on track. However, the persistent spread of coronavirus and slowing China growth raise questions about whether the global economy can absorb the winding down of quantitative easing. That’s pushing them to buy protection against equity swings.

Still, data Thursday showed that applications for U.S. state unemployment benefits dropped for a fourth consecutive week, a trend that suggests labor market conditions are improving as the economy recovers.

Some of the main moves in markets:

 

Stocks

• The S&P 500 was little changed as of 11 a.m. New York time
• The Nasdaq 100 rose 0.3 per cent
• The Dow Jones Industrial Average fell 0.3 per cent
• The Stoxx Europe 600 fell 1.5 per cent
• The MSCI World index fell 0.8 per cent

Currencies

• The Bloomberg Dollar Spot Index rose 0.5 per cent
• The euro fell 0.3 per cent to US$1.1681
• The British pound fell 0.7 per cent to US$1.3661
• The Japanese yen was little changed at 109.71 per dollar

Bonds

• The yield on 10-year Treasuries declined one basis point to 1.24 per cent
• Germany’s 10-year yield was little changed at -0.49 per cent
• Britain’s 10-year yield declined two basis points to 0.54 per cent

Commodities

• West Texas Intermediate crude fell 3.6 per cent to US$63.12 a barrel
• Gold futures were little changed

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Stocks and commodities drop on Fed, growth worries - BNN
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