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Bloomberg
US stocks pared gains amid fresh tough talk on trade by a Trump administration official. Treasuries advanced with the dollar and oil gained.
The S&P 500 pared two-thirds of a gain that reached 0.9 percent, while the technology-heavy Nasdaq indexes turned lower after Larry Kudlow said America is not retreating in its approach on trade.
Stocks rose at the open after President Donald Trump suggested he wouldn’t take a hard line on Chinese investment in the US Equities in Asia dropped, with Chinese stocks extending their decline as the yuan slipped. West Texas Intermediate crude traded at a one-month high.
Washington’s less-confrontational stance, which appears to include abandoning plans to use a 1977 emergency law to curb prospective investments, whipsawed markets that were already on edge after a series of mixed signals from the administration.
The Federal Reserve Bank of Atlanta President Raphael Bostic on June 26 warned that disruption to trade could increase risk to the economy.
Developing-market currencies fell and stocks tumbled, with the MSCI Emerging Markets Index hitting the lowest in 10 months.
New Zealand and Indonesia monetary policy decisions on Thursday. US personal spending probably increased in May for a third month, economists forecast ahead of Friday’s data. China manufacturing and non-manufacturing PMI are due on Saturday.
The S&P 500 rose 0.3 percent in New York. The Nasdaq Composite Index was lower. The Stoxx Europe 600 Index climbed 0.7 percent. The MSCI Asia Pacific Index dipped 0.8 percent to the lowest in more than eight months. The MSCI World Index of developed countries fell 0.1 percent.
The Bloomberg Dollar Spot Index advanced 0.3 percent to the highest in a week. The Japanese yen declined 0.3 percent to 110.375 per dollar. The euro decreased 0.3 percent to $1.1609. The British pound declined 0.5 percent to $1.3166, the weakest in more than seven months on the largest fall in more than a week.
The yield on 10-year Treasuries fell three basis points to 2.85 percent, reaching the lowest in four weeks on its fifth straight decline. Germany’s 10-year yield declined two basis points to 0.32 percent.
Britain’s 10-year yield declined six basis points to 1.246 percent, the lowest in almost four weeks on the biggest fall in more than a week.
Gold futures fell 0.2 percent to $1,257 an ounce, the weakest in more than six months.
West Texas Intermediate crude rose 1.5 percent to $71.59 a barrel in New York. Brent crude climbed 1.1 percent to $77.14 a barrel, the highest in almost three weeks.