GLOBAL MARKETS-U.S. stocks, Treasury yields drop ahead of Fed decision

Published 30/10/2019, 17:03
Updated 30/10/2019, 17:09
© Reuters.  GLOBAL MARKETS-U.S. stocks, Treasury yields drop ahead of Fed decision

* All 3 major U.S. stock averages dip

* Treasury yields slide, yield curve flattens

* Fed expected to cut rates, investors eye Powell remarks

(Updates to U.S. market open, changes dateline (was LONDON),

byline)

By Stephen Culp

NEW YORK, Oct 30 (Reuters) - Wall Street fell and U.S.

Treasury yields dipped as data showed weakening U.S. economic

growth and investors looked to an expected rate cut from the

Federal Reserve.

Investor sentiment was also muted in European and emerging

markets in the wake of underwhelming earnings and renewed

uncertainties in Britain, which is set to hold a parliamentary

election on Dec. 12. On Wall Street, a spate of mixed corporate earnings results

and a decline in the U.S. GDP growth rate kept investors

cautious. Market participants will scrutinize Fed chair Jerome

Powell's remarks later in the session for clues to future

economic policy.

The Commerce Department's advance reading of third-quarter

GDP USGDPA=ECI showed the U.S. economy expanded at a 1.9%

annual rate, down from 2% in the second quarter but exceeding

the 1.6% growth rate analysts expected. "It looks like a wait and see market," said Paul Nolte,

portfolio manager at Kingsview Asset Management in Chicago. "And

we're trading in a narrow range as investors see how the Fed

will thread the needle between being supportive of financial

markets if the economy weakens or allowing growth to develop

organically."

The Dow Jones Industrial Average .DJI fell 24.7 points, or

0.09%, to 27,046.72, the S&P 500 .SPX lost 3.54 points, or

0.12%, to 3,033.35 and the Nasdaq Composite .IXIC dropped

14.26 points, or 0.17%, to 8,262.59.

The pan-European STOXX 600 index .STOXX lost 0.08% and

MSCI's gauge of stocks across the globe .MIWD00000PUS shed

0.14%.

Emerging market stocks lost 0.43%. MSCI's broadest index of

Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.31%

lower, while Japan's Nikkei .N225 lost 0.57%.

Treasury yields were lower following the U.S. GDP data.

Benchmark 10-year notes US10YT=RR last rose 11/32

in price to yield 1.7979%, from 1.835% late on Tuesday.

The 30-year bond US30YT=RR last rose 31/32 in price to

yield 2.2855%, from 2.331% late on Tuesday.

The dollar was flat against a basket of major world

currencies. The dollar index .DXY fell 0.01%,

with the euro EUR= up 0.09% to $1.112.

The Japanese yen strengthened 0.01% versus the greenback at

108.89 per dollar, while Sterling GBP= was last trading at

$1.2868, up 0.02% on the day.

Oil prices fell on worries about a possible delay in

resolving the U.S.-China trade war, which has hurt global oil

demand. U.S. crude CLcv1 fell 1.58% to $54.66 per barrel and Brent

LCOcv1 was last at $60.62, down 1% on the day.

Gold prices firmed after touching a one-week low in the

previous session. Spot gold XAU= added 0.5% to $1,494.38 an ounce.

Copper CMCU3 lost 0.12% to $5,920.50 a tonne.

Fiat vs Peugeot shares https://tmsnrt.rs/2Nmhg1f

Back to the 90s interactive https://tmsnrt.rs/2Nn8BLJ

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