World stocks steady ahead of United States job data

World stocks steady ahead of United States job data

World stocks steady ahead of United States job data

In oil, crude futures steadied on Friday after climbling to four-year highs earlier this week, and both benchmarks marked weekly gains ahead of USA sanctions on Iranian oil exports.

Bonds impact the economy through the variables that determine economic growth. The Russell 2000 index of small-cap stocks also slipped 10 points to 1,661, in line with the broader market.

Costco Wholesale dropped 3.7 percent after the company's quarterly sales barely beat analysts' estimates, while gross margins fell on rising costs and higher investments.

Even as the equity markets are trending close to record highs, the bond market is witnessing an accelerated sell-off.

Fed Chairman Jerome Powell said the economy can expand for "quite some time", which also helped the yield curve steepen to its highest in two months.

Bank of America Merrill Lynch in a report explained that pre-committing United States dollars 8 billion a month for it over and above the USD 25-30 billion lost in interventions since April will push the overall forex reserves below the critical eight-month import cover mark.

The S&P 500 index rose 2 points, or 0.1 percent, to 2,903 as of 10 a.m.

Tesla shares fell 5.6 percent after Chief Executive Officer Elon Musk stirred nerves about the settlement of his securities fraud lawsuit by mocking the U.S. Securities and Exchange Commission on Twitter.

European stocks fell for the second day in a row.

The Dow fell 0.75%, the S&P 500 lost 0.82% and the Nasdaq composite dropped 1.81%.

The pan-European FTSEurofirst 300 index .FTEU3 lost 1.02 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 1.00 percent.

Bond prices plunged Wednesday, sending the yield on the 10-year Treasury note to its highest level in more than seven years. "We haven't seen anything like it since the (2016 presidential) election". Last week, the Fed boosted its key rate to a range of 2 percent to 2.25 percent, continuing its push that began in December 2015 to get rates back to more normal levels after cutting them to zero percent during the 2008 financial crisis.

Lingering worries about Italy's finances pushed Milan down 0.9 per cent, while London's FTSE, Frankfurt's DAX and the CAC in Paris were off 0.6-0.8 per cent and Wall Street futures were modestly weaker.

US Treasury bond yields are on a seven-year high, echoing a market correction in February when rising yields of risk-free government debt made equities less attractive and lowered their value. Goodyear Tire & Rubber slid 2.5 percent to $22.66.

If the 10-year Treasury yield goes up, so does the rate on fixed-rate mortgages, such as the common 30-year product.

The Japanese yen increased 0.2 percent to 113.753 per dollar.

Benchmark U.S. crude was little changed at $74.34 a barrel in NY and Brent crude, the standard for global oil futures, fell 0.5 percent to $84.16 a barrel in London.

Gold rose 0.3 percent to $1,205.60 an ounce.

Higher U.S. yields are anything but favourable for emerging markets as they tend to draw away much-needed foreign funds while pressuring local currencies. The euro rose to $1.1525 from $1.1515.

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