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GLOBAL MARKETS-Stocks off highs on stimulus concern; gold, silver tumble

Published 12/08/2020, 07:22 am
Updated 12/08/2020, 07:24 am
© Reuters.
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(Updates prices, comment; adds byline)

* Dollar slips while stocks are on the march

By Herbert Lash and Rodrigo Campos

NEW YORK, Aug 11 (Reuters) - A gauge of global equity markets ended little changed on Tuesday, hamstrung by a late sell-off on Wall Street prompted by mounting uncertainty about more fiscal stimulus.

U.S. stocks retreated from near record highs after Senate Majority Leader Mitch McConnell, a Republican, said there had been no talks between the White House and House Democrats after they stalled last week. the sharp move in stocks, which had seen the S&P 500 brush against its record set in February, Treasury yields climbed ahead of record 10-year supply and gold and silver prices tumbled.

The dollar index got a late bid and ended higher for a fourth straight session. The U.S. currency fell as much as half a percent earlier on Tuesday but the late stimulus headlines turned the air out of the euro rally and gave a boost to the greenback.

The stronger dollar was no help for already battered precious metals. Spot gold prices fell near 6%, the largest one-day drop in over seven years and silver XAG= plunged over 15%, its largest daily drop in over a decade.

Spot gold XAU= last dropped 5.6% to $1,914.47 an ounce.

U.S. producer prices increased by the most in more than 1-1/2 years in July, and the Labor Department's producer price index for final demand rose 0.6%, driven by a surge in portfolio management fees and rising costs for gasoline. sitting here close to the all-time highs in the S&P 500, so any potential negative headline like that can cause a hiccup," said Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.

Investors have been hoping Republicans and Democrats will resolve their differences and agree on another relief program to support about 30 million unemployed Americans.

MSCI's benchmark for global equity markets .MIWD00000PUS rose 0% to 564.09, off less than 3% from its record, while Europe's broad FTSEurofirst 300 index .FTEU3 closed up 1.64% at 1,436.83.

On Wall Street, the Dow Jones Industrial Average .DJI fell 0.38%, the S&P 500 .SPX lost 0.80% and the Nasdaq Composite .IXIC dropped 1.69%.

Russian President Vladimir Putin's announcement that Russia had become the first country to grant regulatory approval to a COVID-19 vaccine after less than two months of human testing aided sentiment, some analysts said. 10-year notes US10YT=RR last fell 20/32 in price to yield 0.6382%, from 0.574% late on Monday.

The dollar strengthened after the late stimulus headlines.

The euro EUR= rose 0.03%, to $1.1739. The dollar index =USD rose 0.037%, and the Japanese yen weakened 0.51% versus the greenback at 106.50 per dollar.

U.S. crude CLc1 recently fell 0.64% to $41.67 per barrel and Brent LCOc1 was at $44.63, down 0.8% on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets

http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Emerging markets

http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap

http://tmsnrt.rs/2EmTD6j German vs US real yields

https://tmsnrt.rs/2PEuXdm World stocks market cap

https://tmsnrt.rs/2XO8NtE Daily percent change: spot gold, silver

https://tmsnrt.rs/31HFji7

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