NEW YORK: Global stocks and the U.S. dollar slid on Friday, July 30 ''as investors trimmed risk exposure on data showing the U.S. economy slowing a bit more than expected even as other news suggested a slow, steady recovery. The dollar hit its lowest since November against the Japanese yen as data showing U.S. gross domestic product slowed in the second quarter reinforced expectations for low U.S. interest rates well into next year.
The dollar's weakness helped crude oil to rebound and drive strong rallies in wheat and sugar, which lifted the Reuters-Jefferies CRB index, a global commodities benchmark, to its biggest monthly gain in July in 14 months.
The U.S. Commerce Department said GDP expanded at a 2.4 percent annual rate in the second quarter, less than the 2.5 percent pace analysts polled by Reuters had expected.
But European stocks recovered from a sharp fall to close only slightly lower and U.S. stocks pared losses on separate, mixed signals from U.S. data to close flat.
A jump in the Chicago Purchasing Managers Index to 62.3 in July suggested a slow but steady economic recovery was spurring buying. Analysts expected a reading of 56.5.
A separate report showed consumer sentiment slumped to an 8-month low, emblematic of a fragile economy.
Global stocks as measured by MSCI's all-country world index and its emerging market index both pared losses to fall about 0.2 percent.
Wall Street closed little changed to wrap up its best month in a year after another week of strong corporate results that offset the impact of lackluster economic data.
The 7 percent gain in July for the S&P 500 and Dow was on low volume and followed an almost 14 percent decline through May and June.
The Dow Jones industrial average closed down 1.22 points, or 0.01 percent, at 10,465.94. The Standard & Poor's 500 Index gained 0.07 point, or 0.01 percent, at 1,101.60. The Nasdaq Composite Index rose 3.01 points, or 0.13 percent, to 2,254.70.
"The market kind of stalled up the last couple of days," said Nick Kalivas, an analyst MF Global. "On the surface earnings numbers have been pretty strong but underneath there was a loss of momentum," he said.
The dollar fell 2.2 percent against the yen in July, the third straight month of declines, while the euro rose 6.7 percent against the dollar, its best month since May 2009.
"It's going to be very difficult for a (dollar) rally and people are going to get more risk averse. You could see euro go below $1.30 and the dollar fall below 86 yen," said Boris Schlossberg, director of FX research at GFT Forex in New York.
Copper led industrial commodities in July with a gain of 12.4 percent, its biggest in a year.
Money managers more than doubled their long, or bullish exposure, in U.S. copper futures this week as prices hit peaks last seen in May, trade data released on Friday showed.
Gold lost about 5 percent in July, its biggest monthly loss since December, as safe-haven demand fizzled on lessening fears over a euro zone sovereign debt crisis.
U.S. gold futures for December delivery settled up $12.70, or 1.1 percent, at $1,183.90 on Friday.
Oil rebounded from losses that pushed benchmark crude below $77 a barrel.
U.S. crude for September delivery rose 59 cents to settle at $78.95 a barrel. ICE Brent also rose 59 cents to settle at $78.18 a barrel.
U.S. Treasuries rose on growing expectations for more accommodative monetary policy, with the benchmark 10-year note yield falling within roughly two basis points of a 15-month low and the two-year yield setting a new record low.
Bond prices move inversely to their yield.
The 2-year Treasury note fell to a record low of 0.559 percent. The benchmark 10-year U.S. Treasury note was up 21/32 in price to yield 2.91 percent. - Reuters
The dollar's weakness helped crude oil to rebound and drive strong rallies in wheat and sugar, which lifted the Reuters-Jefferies CRB index, a global commodities benchmark, to its biggest monthly gain in July in 14 months.
The U.S. Commerce Department said GDP expanded at a 2.4 percent annual rate in the second quarter, less than the 2.5 percent pace analysts polled by Reuters had expected.
But European stocks recovered from a sharp fall to close only slightly lower and U.S. stocks pared losses on separate, mixed signals from U.S. data to close flat.
A jump in the Chicago Purchasing Managers Index to 62.3 in July suggested a slow but steady economic recovery was spurring buying. Analysts expected a reading of 56.5.
A separate report showed consumer sentiment slumped to an 8-month low, emblematic of a fragile economy.
Global stocks as measured by MSCI's all-country world index and its emerging market index both pared losses to fall about 0.2 percent.
Wall Street closed little changed to wrap up its best month in a year after another week of strong corporate results that offset the impact of lackluster economic data.
The 7 percent gain in July for the S&P 500 and Dow was on low volume and followed an almost 14 percent decline through May and June.
The Dow Jones industrial average closed down 1.22 points, or 0.01 percent, at 10,465.94. The Standard & Poor's 500 Index gained 0.07 point, or 0.01 percent, at 1,101.60. The Nasdaq Composite Index rose 3.01 points, or 0.13 percent, to 2,254.70.
"The market kind of stalled up the last couple of days," said Nick Kalivas, an analyst MF Global. "On the surface earnings numbers have been pretty strong but underneath there was a loss of momentum," he said.
The dollar fell 2.2 percent against the yen in July, the third straight month of declines, while the euro rose 6.7 percent against the dollar, its best month since May 2009.
"It's going to be very difficult for a (dollar) rally and people are going to get more risk averse. You could see euro go below $1.30 and the dollar fall below 86 yen," said Boris Schlossberg, director of FX research at GFT Forex in New York.
Copper led industrial commodities in July with a gain of 12.4 percent, its biggest in a year.
Money managers more than doubled their long, or bullish exposure, in U.S. copper futures this week as prices hit peaks last seen in May, trade data released on Friday showed.
Gold lost about 5 percent in July, its biggest monthly loss since December, as safe-haven demand fizzled on lessening fears over a euro zone sovereign debt crisis.
U.S. gold futures for December delivery settled up $12.70, or 1.1 percent, at $1,183.90 on Friday.
Oil rebounded from losses that pushed benchmark crude below $77 a barrel.
U.S. crude for September delivery rose 59 cents to settle at $78.95 a barrel. ICE Brent also rose 59 cents to settle at $78.18 a barrel.
U.S. Treasuries rose on growing expectations for more accommodative monetary policy, with the benchmark 10-year note yield falling within roughly two basis points of a 15-month low and the two-year yield setting a new record low.
Bond prices move inversely to their yield.
The 2-year Treasury note fell to a record low of 0.559 percent. The benchmark 10-year U.S. Treasury note was up 21/32 in price to yield 2.91 percent. - Reuters
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