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Bloomberg
US stocks fluctuated after suffering the first 1 percent decline since October, while havens from Treasuries to the yen remained in demand as investors assessed the prospects for pro-growth policies in America. The S&P 500 Index struggled for direction in afternoon trading, with gains in technology shares offset by renewed selling in banks that bore the brunt of Tuesday’s rout. Treasury 10-year yields fell below 2.40 percent, the yen surged versus all its G-10 peers and gold rose toward $1,250 an ounce. Bloomberg’s dollar measure fell a sixth day, its longest slump since November.
Investors remained on edge a day before a Republican health-care bill is set for a vote in Congress. Lawmakers have signaled any setback could delay enactment of tax cuts and spending increases, the prospects for which have underpinned the rally in risk assets since Donald Trump’s election. The depth of selling Tuesday drew some investors back in on speculation the drop went too far given data showing strength in the global economy.
“Everyone has been waiting for a dip for so long that when you get some kind of a dip, for not just tech but large-cap value too, it’s one of those opportunities to buy in,†said Mariann Montagne, a portfolio manager at Gradient Investments LLC, which oversees about $1.4 billion. “Maybe people are seeing a cue that things aren’t deteriorating across tech land. The deterioration of tech wasn’t due to fundamentals, it was just a function of pricing.†The U.S. Federal Reserve speakers just keep coming, and as you’d expect Janet Yellen’s appearance on March 23 will attract most attention. Central bank policy decisions are expected in New Zealand, the Philippines and Sri Lanka. March PMI and final fourth-quarter GDP figures for France are due Friday.
The S&P 500 was little changed at 2,344.65 as of 12:52 p.m. in New York, after earlier falling as much as 0.3 percent. The measure notched on Tuesday its first 1 percent decline since October. Financial shares slid 0.4 percent following a 2.9 percent rout Tuesday. The Stoxx Europe 600 Index fell 0.4 percent, the biggest decrease in about a month. The FTSE 100 Index slid 0.7 percent, holding its level as reports surfaced that shots were fired outside of U.K. parliament. The MSCI Emerging Market Index fell 0.6 percent in its first retreat in almost two weeks.
The Bloomberg Dollar Spot Index dropped 0.2 percent, headed for a sixth straight loss.. The British pound and euro both fell 0.2 percent. The Japanese yen rose 0.4 percent to 111.31 per dollar, hitting the strongest in about four months with its seventh straight increase.
The yield on 10-year Treasuries declined two basis points to 2.39 percent, the lowest in more than three weeks. France’s 10-year yield fell four basis points to the lowest in a week. Germany’s dropped four basis points.
West Texas Intermediate oil fell 1.4 percent to $47.60, dropping for a third day as data showed U.S. crude supplies climbed. Copper fell 0.7 percent to $5,738 per metric ton, the lowest in more than a week. Iron ore sank 3.9 percent, the largest drop in more than three months.