Dollar, Bonds Extend Slides; Stocks Fluctuate: Markets Wrap

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FILE PHOTO: U.S. Dollar banknotes are seen in this photo illustration taken February 12, 2018. REUTERS/Jose Luis Gonzale/Illustration/File Photo

(Bloomberg) — The dollar weakened to the lows of the day, Treasuries extended losses and stocks fluctuated as concern about a an escalating trade war outweighed this week’s positive corporate earnings reports.

The dollar slumped by the most since May after President Donald Trump said he’s “ready to go” with additional import tariffs and that China, the European Union and others have been manipulating their currencies and interest rates. Yields on Treasuries climbed as Trump doubled down on comments that he’s unhappy with the Federal Reserve tightening after the administration has worked so hard to grow the economy.

Trump’s latest move in the trade war with China came as investors try to gauge the ability of the Asian nation’s economy — the world’s second-biggest — to withstand a protectionist showdown. The yuan may be a key tool in China’s response to Trump, who continues to express dissatisfaction with America’s own monetary policy as his country’s currency strengthens.

Elsewhere, WTI crude nudged higher, while most base metals also advanced. Emerging market equities climbed.

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These are the main moves in markets:
Stocks

The S&P 500 Index slipped less than 0.1 percent as of 2:52 p.m. in New York.
The Dow Jones Industrial Average dropped less than 0.1 percent.
The Nasdaq Composite Index rose less than 0.1 percent.
The U.K.’s FTSE 100 Index was little changed.
The MSCI Emerging Market Index gained 1.1 percent.
The Stoxx Europe 600 Index fell 0.1 percent.

Currencies

The Bloomberg Dollar Spot Index slumped 0.7 percent.
The euro increased 0.6 percent to $1.1707.
The British pound strengthened 0.7 percent to $1.3108.
The Japanese yen gained 0.6 percent to 111.80 per dollar.
South Africa’s rand gained 0.6 percent to 13.46 per dollar.

Bonds

The yield on 10-year Treasuries rose five basis points to 2.88 percent.
Italian 10-year yields increased seven basis points to 2.58 percent.
Germany’s 10-year yield rose four basis points to 0.37 percent.

Commodities

West Texas Intermediate crude rose for a fifth day, climbing 0.6 percent to $69.86 a barrel.
Gold increased for the first time in six trading sessions, climbing 0.4 percent to $1,228.11 an ounce.

©2018 Bloomberg L.P.

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