Stocks, Trea­sury yields both fall as oil re­treats

New Haven Register (New Haven, CT) - - BUSINESS -

U.S. stocks slipped amid signs of a com­modi­ties glut and un­cer­tain prospects for Amer­i­can tax cuts, while the dol­lar lost the most since Septem­ber as the Amer­i­can yield curve flat­tened fur­ther ahead of in­fla­tion data.

The S&P 500 in­dex fell for the third time in four days. En­ergy and ma­te­ri­als pro­duc­ers led losses as Bloomberg’s com­mod­ity in­dex de­clined the most in six months. Crude slid the most in more a month af­ter a tepid de­mand fore­cast. Min­ers led Europe’s eq­uity bench­mark to its long­est slide in a year. The green­back touched a three-week low, while the euro soared on op­ti­mism over the re­gion’s econ­omy.

In­vestors will turn to data on U.S. con­sumer prices and re­tail sales Wed­nes­day for clues on the strength of the world’s largest econ­omy af­ter the flat­test Amer­i­can yield curve in a decade and weak data from China raised con­cern that growth is slow­ing. Vo­latil­ity has in­creased since eq­ui­ties reached records a week ago, while credit spreads have widened as a sense of cau­tion gripped global mar­kets.

The House may vote on its ver­sion of the tax cut bill as soon as Thurs­day, while the Se­nate con­tin­ues to ham­mer out its take. Gold­man Sachs Group said in a note Tues­day the de­bate is mov­ing faster than they ex­pected, boost­ing the odds that tax re­form will be en­acted by early next year to 80 per­cent from 65 per­cent.

The S&P 500 in­dex dropped 0.2 per­cent to 2,578.91. The Stoxx Europe 600 in­dex sank 0.6 per­cent, af­ter hit­ting the low­est in seven weeks with its sixth con­sec­u­tive de­cline.

Else­where, the MSCI All-Coun­try World in­dex fell 0.1 per­cent and the MSCI Emerg­ing Mar­ket in­dex de­clined 0.4 per­cent. The Bloomberg Dol­lar Spot in­dex de­creased 0.5 per­cent, touch­ing low­est in al­most three weeks on the largest dip since Sept. 7.

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