Stocks retreat globally as dollar climbs with bonds

Bloomberg

Stocks fell from Tokyo to New York as data cast doubts on growth prospects for the euro area while political tensions increased in North Korea, Turkey and the US Ten-year Treasury yields briefly dipped below 3 percent, while the dollar climbed.
The S&P 500 Index dropped for a second day at the highest since March, while the Stoxx Europe 600 Index sank by the most in two months as optimism over
US-China trade talks faded along with prospects for President Donald Trump’s summit with North Korea’s leader. Concerns over Turkey’s financial stability drove the lira to a record low and weighed on emerging-market assets. The yen jumped as traders sought havens.
The euro fell to a six-month low as manufacturing data added to concern economic momentum is slowing, while the pound weakened as UK inflation trailed expectations, denting prospects for rate increases. The dollar climbed to the strongest since December.
Just as trade tensions between the US and China seemed to be easing, Trump appeared to express pessimism on a meeting with Kim Jong-un, while in Italy questions are swirling around the populist government’s economic policies.
The US president kept up his attacks on Special Counsel Robert Mueller’s investigation, warning of a “scandal the likes of which this country may never have seen before.”
“If you look at history, you find that geopolitics does rattle markets,” Vasu Menon, OCBC Bank vice president, said on Bloomberg Television. “The markets are clearly quite nervous because we’ve had a good run and this is an excuse for the markets to take a breather.”
The Federal Reserve releases minutes of the central bank’s May 1-2 meeting on Wednesday; US new home sale are due as are euro-area PMIs. Thursday sees the Bank of England Markets Forum at Bloomberg London. Speakers include BOE Governor Mark Carney and New York Fed President William Dudley. At the St. Petersburg Forum on Friday, Russian President Vladimir Putin and French President Emmanuel Macron, IMF Managing Director Christine Lagarde, and Japan Prime Minister Shinzo Abe participate on a panel moderated by Bloomberg News Editor-in-Chief John Micklethwait.
Also on Friday, European Union finance ministers discuss the latest on Brexit talks, in Brussels. The S&P 500 Index fell 0.5 percent in New York. The Stoxx Europe 600 Index sank 1.1 percent in the biggest tumble in two months. The MSCI Asia Pacific Index fell 0.5 percent.
The Bloomberg Dollar Spot Index rose 0.3 percent to the highest in five months. The euro fell 0.6 percent to $1.1711, the weakest in more than six months. The British pound sank 0.8 percent to $1.3328, the weakest since December. The yield on 10-year Treasuries decreased four basis points to 3.02 percent.