US stocks fluctuated near all-time highs after rising in nine of the past 10 days, while Treasuries advanced as investors awaited Federal Reserve meeting minutes for clues on the pace of tightening. The euro extended declines political risk in the region increased.
The torrid gains in American equities stalled on a day with few earnings reports and data showing continued strength in the US housing market.
The dollar was little changed ahead of the Fedâ€™s report, with investors speculating officials will strike a hawkish tone after the meetingâ€™s statement showed a more measured approach.
Europeâ€™s currency dropped a fourth day, briefly passing 1.05 per dollar for the first time in more than six weeks as sovereign bonds across the region advanced. Oil fell from the highest price in more than a week.
While American risk assets continue to attract buyers speculating growth in the worldâ€™s largest economy is robust enough to withstand higher interest rates, investors in Europe seem increasingly divided, with French presidential elections and the UKâ€™s Brexit plans driving demand for the safest debt. Optimism for global economic growth and improved corporate earnings has been supporting stocks.
Here are some events that investors are watching out for:
The Fed releases minutes Wednesday, possibly giving investors a look into how members see Trumpâ€™s policies. Data should show the US housing market perking up at the start of the year. Itâ€™s International Petroleum Week in London and top OPEC, government and company officials are attending. Legislators in the UK will consider changes to the Brexit bill next Monday and Wednesday that may address the rights of EU citizens in Britain and give parliament a binding vote on the final deal.
Here are the main market moves:
The S&P 500 fell 0.1 percent to 2,362.75 at 10:49 a.m in New York. The index added 0.6 percent Tuesday, with the Dow Jones Industrial Average, the Nasdaq Composite Index and the Russell 200 Index closing at all-time highs. The Stoxx Europe 600 Index gave up earlier gains to trade little changed. The gauge hit the highest level since December 2015 as volatility dropped to the lowest since mid-2014.
The MSCI Asia Pacific Index was at the highest level since July 2015 as Chinese shares traded in Hong Kong resumed a rally. Japanese equities managed to end higher even after fluctuations in the yen pressured the Topix.
The Bloomberg Dollar Spot Index slipped less than 0.1 percent, giving up an earlier gain as it fluctuated. The yen led advances in major currencies, strengthening 0.6 percent to 113.01 per dollar, following two days of declines. The euro dropped 0.3 percent to $1.0509 after touching a six-week low, while the pound reversed early gains, weakening 0.2 percent to $1.2449.
The yield on 10-year Treasuries fell three basis points to 2.4 percent. Yields on German bunds due in a decade fell five basis points to 0.25 percent, as that on two-year notes touched a record minus 0.915 percent. The difference between German five-year bonds and their equivalent interest rate swap spread hit the highest level on record.
West Texas Intermediate crude lost 0.7 percent to $53.94. Brent fell 0.7 percent. Copper dropped 0.9 percent, leading a decline in most industrial metals amid signs of a slower-than-expected demand recovery in China after Lunar New Year holidays. Nickel fell 0.8 percent.