US stocks lower as yield curve inversion deepens

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Oct 31, 2012
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Dollar strengthened despite bond yields decline

US stock market extended losses on Wednesday as the spread between the 10-year Treasury note and the 3-month Treasury bill moved further into negative territory. The S&P 500 lost 0.7% to 2783.02. The Dow Jones industrial average dropped 0.9% to 25126.41. Nasdaq composite index fell 0.8% to 7547.31. The dollar strengthening continued at previous session pace: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, added 0.2% to 98.12 and is higher currently. Futures on US stock indices point to higher openings today.



CAC 40 underperforms European indexes

European stocks slide accelerated on Wednesday on persisting political tension over budget standoff between Italy and the EU. Both the EUR/USD and GBP/USD kept sliding and are lower currently. The Stoxx Europe 600 dropped 1.5% led by basic resources. Germany’s DAX 30 fell 1.6% to 11897.91. France’s CAC 40 sank 1.7% while UK’s FTSE 100 lost 1.2% to 7185.30.

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Australia’s All Ordinaries Index leads Asian indexes losses

Asian stock indices are falling today. Nikkei slid 0.3% to 20942.53 despite continuing yen slide against the dollar. Chinese stocks are falling after Tuesday comments by Chinese official that Beijing could use its strength in rare earth minerals as leverage in its trade dispute with the US : the Shanghai Composite Index is down 0.8% and Hong Kong’s Hang Seng Index is 0.8% lower. Australia’s All Ordinaries Index lost 0.9% as Australian dollar turned higher against the greenback.



Brent gains on forecasts of US crude inventories dip

Brent futures prices are edging higher today. Prices fell yesterday. The American Petroleum Institute reported late Wednesday US crude inventories fell by 5.3 million barrels last week. July Brent crude lost 0.9% to $69.45 a barrel on Wednesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.