World_news Stocks, Bonds Whipsawed by Mixed Data and Fedspeak: Markets Wrap – Yahoo Finance

World_news

(Bloomberg) — U.S. stocks fell and Treasuries fluctuated as traders parsed mixed economic data and remarks from Federal Reserve officials.

The S&P 500 started the day on the green after a report on jobless claims offered the latest sign of strength in the labor market. Equities lost steam shortly after as separate data showed a contraction in U.S. factory activity. Benchmark 10-year yields rose after Fed Bank of Kansas City President Esther George said the U.S. doesn’t need lower rates and her Philadelphia counterpart Patrick Harker affirmed he’s “on hold” right now for further easing.

Euro-area government bonds slumped after the European Central Bank expressed concern that investors were losing faith in the institution’s ability to revive inflation and as a measure of German manufacturers reinforced recession concern. The British pound jumped as comments by French and German leaders stoked optimism about a Brexit deal.

Read: Trump Sees Germany’s Negative-Bond Sale as Positive, Bashes Fed

Financial markets have been volatile amid concern over global economic weakness and renewed U.S.-China trade tension. Minutes from the Fed’s July meeting showed Wednesday that officials viewed their cut last month as insurance against too-weak inflation and the risk of a deeper slump in business investment. Analysts expect Powell to suggest the central bank is ready to reduce rates further when he delivers his speech in Jackson Hole Friday.

Here are some notable events coming up:

Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting Thursday.

–With assistance from David Wilson, Paul Allen, Adam Haigh and Yakob Peterseil.

To contact the reporters on this story: Rita Nazareth in New York at rnazareth@bloomberg.net;Todd White in Madrid at twhite2@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Rita Nazareth

For more articles like this, please visit us at bloomberg.com

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