Markets Report
US shares fell sharply Tuesday on continued concerns about the health of Fannie Mae and Freddie Mac and the highest US producer price increase in 27 years. The Dow dropped 1.1%, the Nasdaq lost 1.4%. The S&P shed 0.9%.
Asian shares were mixed, with new growth improvement polices from Beijing supporting Chinese stocks. The Nikkei was off 0.1%. The ASX fell 3.6%. The Hang Seng advanced 1.6%.
The greenback gave back some of its recent gains on fears the US economy is tanking. EUR/USD was down 12 pips to 1.4762. Cable fell 27 pips to 1.8641. USD/JPY rose 20 pips to 109.90. AUD/USD added 4 pips to 0.8720.
European shares were expected to open higher. The DAX future was up 0.4%. The CAC future advanced 0.6%. Minutes from the BOE and UK July public finance data (8:30 GMT) could prod markets in early trade. The data will be reported live on Need to Know News’ Scream Audio.
Bonds were little changed to lower in early trading. The Bund future fell 10 ticks to 114.23. The 10yr Gilt yield was flat at 4.59%. The 10yr Bund yield was unchanged at 4.17%. The 10yr JGB yield rose 1bp to 1.44%. The 10yr T-note yield was up 1bp at 3.85%.
Oil moved ahead on dollar weakness. WTI rose 54 cents to $115.07. Brent was up 47 cents to $113.72. Gold rose $5 to $821.80.