Gold Silver Reports – Gold Slips, Stocks Under Pressure as Dollar Pauses – Global stocks took another leg down on Thursday in the wake of Federal Reserve minutes that painted a healthy picture of the world’s biggest economy, raising the prospect of tighter monetary policy. The dollar was steady, while Treasuries rose and European bonds were mixed.
The Stoxx Europe 600 Index slid as all the major national equity gauges in the region fell. Earlier in Asia most shares dropped, though China’s market bucked the trend as it reopened after a holiday. Futures on the S&P 500 Index declined. The Treasury move pared some of Wednesday’s slide following the minutes from the Fed’s January meeting, which showed increasing confidence growth will pick up despite concerns around inflation.
“The market is pricing in the possibility of a tighter Fed over time,” Evan Brown, director at UBS Asset Management, who previously worked on the open market trading desk at the New York Fed, told Bloomberg TV in New York. On a day-to-day basis “you’re going to see volatility, you’re going to see equities get a little skittish when yields are rising, but as you look over the long term, fundamentals on the economy are very strong.”
For now, markets remain fragile. February is shaping up as one of the worst months for global equities in more than a year as concerns about a pick-up in inflation and expensive stock prices outweigh evidence of a buoyant U.S. economy. With recent data underpinning the view that inflation is no longer lagging, the OIS space shows traders pricing in just shy of three U.S. rate hikes over the next 12 months.
Read More: Gold Prices Slip Release Of Fed Minutes By Goldman Neal Bhai Reports INDIA
Meanwhile the mood wasn’t all risk-off on Thursday. As well as the mixed picture for European bonds, gold retreated alongside most commodities. West Texas oil fell to around $61 a barrel.
Commodities
- West Texas Intermediate crude decreased 0.7 percent to $61.27 a barrel, the lowest in a week on the largest dip in almost two weeks.
- Gold fell 0.1 percent to $1,323.18 an ounce, reaching the weakest in more than a week on its fifth consecutive decline. – Goldman Neal Bhai Reports
