British data prompts global bond sell-off; Wall Street falls
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
A man (R) cleans electronic boards showing Japan's Nikkei average, the exchange rate between the Japanese yen against the U.S. dollar and stock quotation outside a brokerage in Tokyo, Japan, in this April 6, 2016 file photo. REUTERS/Issei Kato/Files
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
By Hilary Russ
NEW YORK (Reuters) - Strong growth data out of Britain prompted the biggest daily sell-off in government debt for months and pushed yields on the world's benchmark bonds higher on Thursday, as expectations eased for a Bank of England interest rate cut.
The bond sell-off gained momentum in the United States after upbeat jobless claims data pointed to another robust nonfarm payrolls number next week.
Wall Street closed lower, dipping in a choppy session after the latest round of earnings reports. Losses in Comcast and consumer discretionary stocks offset gains in the healthcare sector, while European stocks slid and the U.S. dollar advanced against the Swedish crown and Japanese yen.
Official data showed that growth in Britain's economy slowed only slightly in the three months after it voted to exit the European Union. It grew 0.5 percent between July and September, a touch less than the second quarter's 0.7 percent, enough to temper fears about an immediate economic impact following the Brexit decision.
Britain's 10-year gilt
"The stronger (gross domestic data) print in the UK has given further weight to speculation that the BoE will not provide further stimulus any time soon," said Rabobank strategist Richard McGuire.
Despite beating earnings estimates a day earlier, Comcast (NASDAQ: CMCSA) pulled the S&P and Nasdaq lower, paring some losses after falling as much as 2.7 percent following price target cuts from Barclays and Deutsche Bank.
The Dow Jones industrial average <.DJI> fell 29.65 points, or 0.16 percent, to 18,169.68, the S&P 500 <.SPX> lost 6.39 points, or 0.3 percent, to 2,133.04 and the Nasdaq Composite <.IXIC> dropped 34.29 points, or 0.65 percent, to 5,215.97.
Interest-rate sensitive sectors also struggled as bond yields rose. The S&P real estate sector <.SPLRCR> was down 2.45 percent and on track for its worst decline in five weeks while utilities <.SPLRCU> shed 0.53 percent.
Europe's STOXX 600 <.STOXX> slipped 0.01 percent, with defensive sectors such as healthcare and utilities providing the biggest boost to the index, underscoring investor caution.
The MSCI all-country world stock index <.MIWD00000PUS> fell 0.34 percent.
The U.S. dollar hit its highest in more than seven and a half years against the Swedish crown after dovish comments from Sweden's central bank, and a three-month high against the yen
The dollar extended gains during the day, surging 1.82 percent against the Swedish crown at 9.0696 crowns
Oil prices edged higher as commitments from Gulf OPEC members to cut production assuaged some lingering doubts in the market about cooperation from other producers.
(Additional reporting by William Schomberg, Costas Pitas, Abhinav Ramnarayan and John Geddie in London and Gertrude Chavez-Dreyfuss, Chuck Mikolajczak, Sam Forgione and Ethan Lou in New York; Editing by Nick Zieminski and James Dalgleish)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Herbalife (HLF) Provides Q4, FY17 Guidance in Memorandum for $1.325B Credit Facility; Lowers FY17 Sales Guidance
- IBM (IBM) PT Raised to $144 at Barclays, Says Funamentals Starting To Stablize In Midst Of Persistent Headwinds
- Citigroup Maintains Neutral On IBM (IBM) Following Q4 2016 Earnings Report
Create E-mail Alert Related CategoriesMarket Check, Reuters
Related EntitiesDeutsche Bank, Nonfarm Payrolls, Barclays, Crude Oil, OPEC, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!