US stocks fall as Treasury yields climb to 2014 highs

Bloomberg

All major US stock indexes declined and Treasuries extended a selloff that’s taken yields to the highest since early 2014 as traders gear up for a hectic week of data and policy announcements. The dollar strengthened against its biggest rivals.
The euro retreated as German bonds dropped for a fourth day, while the Stoxx Europe 600 Index inched lower after the MSCI Asia Pacific Index edged down earlier. The sell-off in equities continued into US trading, though all three majors began to pare part of the losses as investors weigh news of “some progress” in the sixth round of Nafta negotiations.
“In Nafta, for example, there’s uncertainty about what happens with trade,” Kevin Caron, a senior portfolio manager at Washington Crossing Advisors, said.
Janet Yellen’s final policy meeting as Federal Reserve chair will be the main focus of investor attention in what’s shaping up to be another active week for markets still finding their feet after the recent dollar selloff.
The greenback advance came after it capped a seventh week of losses, while the yen weakened as the Bank of Japan downplayed Governor Haruhiko Kuroda’s comments on stronger inflation, and the British pound declined as pressure built on Prime Minister Theresa May over Brexit.
Elsewhere, US oil fell, though it’s at about its strongest level in five months relative to global benchmark Brent crude as a weaker dollar and falling stockpiles boost the American marker.
Federal Reserve policy makers will gather for Chair Janet Yellen’s final meeting on interest rates on Wednesday before her term ends and President Trump delivers his first State of the Union address.
Gauges of Chinese manufacturing and services industries are due on Wednesday. The euro area’s twin obsessions—growth and inflation—are on display this week. On Wednesday, the core euro-zone inflation report may show an uptick from a year ago to 1 percent this month.
The Stoxx Europe 600 Index fell 0.2 percent as of 12:20 pm New York time. The MSCI World Index of developed countries sank 0.5 percent, the first retreat in more than a week and the biggest dip in more than two weeks. The MSCI Asia Pacific Index dipped 0.3 percent. Japan’s Nikkei 225 Stock Average fell less than 0.05 percent to the lowest in more than three weeks. The MSCI Emerging Market Index sank 0.4 percent, the first retreat in more than two weeks and the largest decrease in almost three weeks. The UK’s FTSE 100 Index gained 0.1 percent. The S&P 500 Index sank 0.3 percent, while the Dow Jones Industrial Average dropped 0.4 percent.
The Bloomberg Dollar Spot Index jumped 0.4 percent, the biggest increase in more than six weeks. The euro fell 0.6 percent to $1.2357, the largest drop in more than a week. The British pound declined 0.8 percent to $1.4049.