GLOBAL MARKETS-Dollar up, stocks off after Fed comments

martes 4 de agosto de 2015 15:09 GYT
 

(Updates prices, changes comments)
    * Brent oil stabilizes near $50 a barrel after 5 pct drop
    * Euro hits two-week low versus greenback
    * Utilities lead declines on Wall Street

    By Rodrigo Campos
    NEW YORK, Aug 4 (Reuters) - The U.S. dollar and Treasury
yields rose on Tuesday, while stocks fell, after comments from a
top Federal Reserve official brought forward market expectations
of an interest rate increase.
    Oil prices edged higher despite the stronger greenback, 
bouncing back from Monday's rout.
    The dollar rose sharply against the euro after Federal
Reserve Bank of Atlanta President Dennis Lockhart, a member of
the Fed's policy setting committee who typically votes with the
core, told the Wall Street Journal it would take a sharp turn
for the worst in economic data to change his view in support of
a rate hike after the mid-September meeting. 
    Markets are preparing for a rate hike, which would be the
first in nearly a decade.
    On Wall Street, utilities stocks, sharply sensitive to
Treasury yields, were the worst performers among the top 10 S&P
500 industry groups.
    "All the world's central banks have pumped unprecedented
amounts of liquidity; if has not created an inflationary
event, a pullback may create the opposite," said Paul
Mendelsohn, chief investment strategist at Windham Financial
Services in Charlotte, Vermont.
    "You run the risk of triggering a deflationary event and
that's what markets are fearing."
    Just before 3 p.m. EDT (1900 GMT) the Dow Jones industrial
average fell 38.65 points, or 0.22 percent, to 17,559.55,
the S&P 500 lost 2.73 points, or 0.13 percent, to
2,095.31 and the Nasdaq Composite dropped 2.12 points,
or 0.04 percent, to 5,113.27.
    Apple's stock, down in 10 of the last 11 sessions,
weighed heavily on major Wall Street indexes. The stock is off
nearly 15 percent from its record high set in late April.
    The pan-European FTSEurofirst 300 index closed down
0.16 percent and a broad measure of stocks in major markets
globally fell 0.2 percent.

    CONSTANT FED WATCH
    Friday's U.S. employment data are key for markets as they
try to time the Fed's next move. Payrolls figures are expected
to show the U.S. economy created 223,000 jobs in July, on par
with job creation in June, according to economists polled by
Reuters. The unemployment rate is expected to hold steady at 5.3
percent.     
    The euro dipped below $1.09 after Lockhart's comments,
trading at its lowest in two weeks. The currency lost 0.5
percent versus the greenback at $1.0894.
    "He is seen as a swing vote and he has become increasingly
hawkish," said Ian Gordon, G10 currency strategist at Bank of
America Merrill Lynch in New York.    
    U.S. crude rose and copper edged up but the outlook for
commodities continued to be clouded by concerns over a slowdown
in China, the world's second-largest economy.
    Brent added 1 percent to $50.09 a barrel and U.S.
crude gained 1.4 percent to $45.78 a barrel.
    "A retest of Brent crude's 2015 low around $45 per barrel
looks inevitable given current ample market supply and
intensifying bearish market sentiment towards prices," BMI
Research said in a note.
    The Thomson Reuters/CoreCommodity CRB index rose
0.8 percent after hitting a more-than-12-year low on Monday.
    Benchmark 10-year Treasury notes were last down
18/32 in price to yield 2.216 percent, from a yield of 2.152
percent late Monday. U.S. 30-year bonds were last
down 26/32 in price to yield 2.895 percent, from a yield of
2.861 percent late Monday.

 (Additional reporting by Richard Leong, Barani Krishnan and Sam
Forgione; Editing by Chris Reese and Dan Grebler)