But the bounce evaporated as Wall Street opened lower and tumbling crude prices on the back of worries over a supply glut sent the sector index down more than 2.8 percent, making it the worst performer in Europe. The group expects weaker growth because of a more pronounced slowdown in the global economy. The Nasdaq composite lost 65 points, or 1.2 percent, to 5,147.
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Using price inflation as the major indicator of monetary policy risks the health of a modern economic system with a decades old measurement tool. Anadarko stock sank $1.12, or 1.9 percent, to $56.67 and Freeport-McMoRan fell 68 cents, or 6.1 percent, to $10.40.
Of the 30 stocks on the Dow average, only Apple traded higher.
“We’ve had a number of supportive comments from the policy hawks, but they are still struggling to convince the market”.
Brent crude was down 0.7 per cent at $47.98 a barrel after rising 0.65 per cent overnight on a weaker dollar and stronger United States equity markets.
The local currency traded at 73.39 USA cents at 5pm in Wellington from 73.50 cents at 8am, up from 73.17 cents yesterday.
U.S. Treasurys rose, with the two-year note yield near 0.77 percent and the 10-year note yield around 1.66 percent.
As for other precious metals, Comex silver for December settlement gained 10 cents or 0.5 percent to $19.075 per ounce.
Investors also kept an eye on falling oil prices Tuesday.
The London interbank offered rate on three-month dollars, a benchmark for more than $300 trillion worth of financial products worldwide, declined to 0.85028 percent from 0.85578 percent on Monday. Steel production also rebounded from July’s disappointing level, pushing total year-to-date production to within 0.1% of last year’s pace. (6723.TO) rose 2.2% following an agreement to buy USA peer (http://www.marketwatch.com/story/japans-renesas-to-buy-intersil-for-32-billion-2016-09-12) Intersil Corp. Thai stocks climbed 1.4 per cent following the worst four-day drop since December 2014.
Minneapolis Fed President Neel Kashkari said “politics does not play a part” in the Fed’s deliberations and that current low US inflation means there is no “huge urgency” to hike. The stock has given up some of its gains lately. It rose $2.53, or 2.5 per cent, to $108.09 after T-Mobile said preorders for Apple’s newest iPhones, introduced last week, are the strongest it has seen so far.
Asian stocks reversed gains amid the highest volatility in two months as investors assessed the outlook for United States monetary policy and crude oil retreated. The euro was flat at $1.1234 while the dollar index stood little changed at 95.155 after losing about 0.2% the previous day.
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While the stock market’s fall was the main driver behind the yen’s rise, the Japanese currency got a boost earlier in the Asian session from safe-haven flows in reaction to Democratic candidate Hillary Clinton falling ill at a September 11 memorial ceremony and diagnosed with pneumonia.
