(Bloomberg) — Global stock selloff weighed on U.S. equities, with all three major indexes testing support from various daily moving averages.
Most notably, the S&P 500 cash-challenged the 200-DMA of ~2,768.
Earnings misses from several U.S. industrial firms and a Bank of America downgrade of the housing sector fueled equity investor worries.
Treasuries rose and peripheral European bonds fell amid heavy supply, with the Italian curve steepening.
The spread between 10-year BTPs and Bunds touched the highest since 2013 as the European Commission said Italy’s spending plans are excessive.
The dollar and the yen gained as risk-off sentiment spread, with all emerging-market currencies tracked by Bloomberg in the red.
Mexico’s peso was down ~1.3% after U.S. President Donald Trump threatened to shut the border over migration.
Elsewhere, crude fell while gold traded near three-month highs.
- TIPS auction tails, bidding metrics fade
- EU says Italy’s Draft Budgetary Plan for 2019 constitutes “an obvious significant deviation” from EU rules
- Mexican government’s announcement to abolish oil exports is credit negative: Moody’s
- U.S. weekly jobless claims fell to 210k
Key Economic Data:
-R.W.N II, yours in 322.
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