Gold falls by nearly 3% Adds Europe market close, updates prices, changes headline NEW YORK, Sept. 16 Reuters - Markets dipped on Thursday as concerns about investments in Wall Street and a down day on Wall Street outweighed positive economic data in the United States.
International investors that have been piling into China in recent years are now bracing for one of its huge slack as the troubles of over-indebted property company Evergrande come to a head.
Developers have been snowballing since May. Dwindling resources against 2 trillion US dollars of liabilities have wiped nearly 80% off its stock and bond prices, and an $80 million bond coupon payment now looms next week.
Hong Kong's Hang Seng Index dropped so far this year to its lowest level in the world.
A report from the U.S. Commerce Department shows retail sales unexpectedly rose in August, indicating America's economic recovery is strengthened on positive trends in consumer spending. The strong data lifted the dollar and sent up Treasury yields, and positive-haven gold down nearly 3%.
However, the U.S. labor market remains under pressure with initial jobless claims growing slightly more than anticipated last week.
Losses on Wall Street were dominated by technology and energy stocks as oil retreated from recent highs now that the threat to U.S. Gulf production from Hurricane Nicholas receded was dominated by the oil stocks in the United States.
The MSCI world equity index was last down to 0.29% off an all-time high on Sept. 7. The broadest index of the Asia-Pacific shares outside Japan closed down 0.87%.
European equity markets turned the trend around and Europe's STOXX 600 closed 0.44% up.
The Dow Jones Industrial Average fell 91.51 points (0.36%) to 34,722 in March 1997; its share was of 500,061 shares. 88, the S&P 500 lost 11.6 points or 0.26% to 4,469. 1 and the Nasdaq composite dropped 15.52 points, or 0.1%, to 15,146. Retail spending categories that were strong in August in Covid beneficiaries categories, wrote Ellen Zentner, chief U.S. economist at Morgan Stanley.
Including today's retail sales release, we lift our GDP to 1.9% and real personal consumer spending to 5.0%. Markets remain focused on the next week's Federal Reserve meeting for clues as to when the U.S. central bank will begin to taper stimulus, especially after the flurry of economic data out this week.
On Tuesday, data from the U.S. Labor Department showed inflation cooling and having possibly peaked but inflation in Britain was the highest in years, according to data on Wednesday.
We have an unusual situation where the overall market is sideways to lower, but has a risk-on trend underneath and that's down to signs the Delta variant may be peaking in the U.S. which is driving people into reflation and recovery plays, said Kiran Ganesh, head of cross assets at UBS Global Wealth Management.
U.S. crude fell on the day to $71.74 per barrel and Brent was at $74.69, down 1.02%, 0.2% higher than their average performance for the previous day.
The dollar index rose 0.506% with the euro.
Spot gold slid 2.1% to $1,755. It is 75 per ounce, after hitting a one-month low of $1,744. U.S. - gold futures settled down 2.1% to $1,756. Silber was last in the gold slipstream. It was caught 1.3% lower at $22.79.
The 10-year Treasury yield was 1.3327%, while the core eurozone government bond yields were slightly modified