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US stocks have extended their weekly loss at the worst level since Christmas, while Treasury bills have recovered a fourth day as the Trump administration's niche markets intensified. The oil has dropped.
The S & P 500 also wrapped up its worst month of the year, dropping its May dip to more than 6.5 percent after President Donald Trump threatened to impose an increase in customs duties in the United States. Mexico. The Dow Jones Industrial Index recorded a sixth weekly loss, representing the longest decline since 2011. The Mexican peso fell more than 2%, while the yen jumped.
The 10-year Treasury bond rate was on the verge of the biggest weekly decline since 2014, with traders fully expecting two rate cuts this year in a climate of fear of recession. In almost three weeks, the credit market fear indicators have been most marked in showing the markets for investment grade bonds and high yielding bonds since January.
"When you receive bad news, you take a breath and you try to understand if it is as bad as it seems. This one looks pretty bad, "said Steve Chiavarone, a portfolio manager at Federated Investors, at Bloomberg's New York headquarters. "There's just a level of unpredictability that was introduced last night that I do not think it's helpful for the markets."
The latest move by Tariff Man, which itself calls itself, would impose US duties of 5% on all Mexican imports on June 10, to reach 25% in October, unless Mexico puts an end to "illegal migrants" heading to the United States. when a crucial measure of US inflation observed by the Federal Reserve rose in April for the first time this year and that US spending and revenues exceeded expectations.
Trump's statement in Mexico and a Bloomberg report that China is considering restricting exports of rare earths are leaving markets ready to upset this month, which has been tough for global stocks. Treasury bonds benefited from safe haven demand as yields on 10-year bonds fell to 2.15% on Friday from 2.50% at the beginning of the month.
Elsewhere, gold hit a two-week high as oil dropped to less than $ 54 per barrel in New York, while global demand was a concern.
These are the main movements on the markets:
stocks
The S & P 500 index fell 1.3% at 16 hours. At New York. Dow's average lost 1.4% and Nasdaq 100's 1.5%. The Stoxx Europe 600 index fell by 0.8% to its lowest in 15 weeks. The MSCI Emerging Market index rose 0.3%.
Coins
The Bloomberg Dollar Spot index has changed little. The euro rose 0.4% to 1.1169 USD, the first advance of a week. The Japanese yen jumped 1.1% to 108.48 to the dollar. The offshore yuan fell 0.1% to 6.93 to the dollar.
Obligations
The 10-year Treasury yield decreased by 8 basis points to 2.14%, limiting the largest weekly decline since December 2014. Two-year Treasury yields down 13 points basic at 1.93%. Germany's 10-year yield fell 0.20%, the lowest ever recorded. Japan's 10-year yield fell two basis points to -0.094%, its lowest level in almost three years.
Basic products
West Texas Intermediate crude fell 5.9% to $ 53.26 a barrel, its lowest level since February. Gold rose 1.3% to $ 1,304.81 an ounce, its highest level in seven weeks.
– With the help of Adam Haigh, John Ainger and Yakob Peterseil.
To contact the reporters on this story: Jeremy Herron in New York at [email protected] Vildana Hajric in New York at [email protected]
To contact the editors in charge of this story: Christopher Anstey at [email protected], Robert Brand
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