Wall Street stocks decline and oil rises as China rolls back quarantine rules

NEW YORK/LONDON (Reuters) – Wall Street’s benchmark S&P 500 and Nasdaq fell on Tuesday after US economic data was released, while oil prices rose after China said it would scrap its COVID-19 quarantine rule for inbound travelers. Which was considered a major step in reopening its borders.

US Treasury yields rose after economic data showed the advanced goods trade deficit for November narrowed to $83.35 billion from $98.8 billion in the previous month, while a separate report indicated continued struggles in the housing market as home prices fell amid rising foreclosure rates. real estate.

Oil pared gains as some US energy facilities shut down due to winter storms began resuming work after the commodity earlier hit a three-week high as China’s latest easing of COVID-19 restrictions spurred hopes of a recovery in demand.

On the first day of the holiday-shortened trading week, rising U.S. interest rates pressured stocks in the rate-heavy technology sector, according to Michael O’Rourke, chief market strategist at Jones Trading in Stamford, Connecticut.

“It’s that no one has the conviction to step in and buy at the moment,” O’Rourke said. He said more pressure came from a sharp decline in shares of electric car maker Tesla. (TSLA.O).

Dow Jones Industrial Average (.DJI) The S&P 500 index rose 113.48 points, or 0.34%, to 33,317.41. (.SPX) It lost 5.67 points, or 0.15 percent, to 3,839.15 points, and the Nasdaq Composite. (nineteenth) It fell 90.23 points, or 0.86%, to 10,407.64 points.

Markets in some areas including London, Dublin, Hong Kong and Australia remained closed after the Christmas holidays.

The pan-European STOXX 600 index (.STOXX) It rose 0.19%, the MSCI measure of stocks around the world (.MIWD00000PUS) 0.03% profit.

emerging market stocks (MSCIEF) It increased by 0.27%. MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) It closed 0.53% higher, while Japan’s Nikkei closed (.N225) It increased by 0.16%.

The benchmark 10-year note rose 7.5 basis points to 3.822%, from Friday’s 3.747%. The 30-year note rose 9 basis points last time, yielding 3.9116% from 3.822%. The two-year note rose 6.4 basis points to 4.387% from 4.323%.

The dollar pared losses on Tuesday after China said it would scrap its COVID-19 quarantine rule for inbound travelers, which also boosted risk-linked currencies such as the Australian dollar.

The dollar index, which measures the greenback against a basket of major currencies, was down 0.01%, with the euro up 0.14%, to $1.065.

The Japanese yen declined by 0.37% against the dollar, at 133.36 per dollar, while the pound sterling was last traded at 1.2019 dollars, down 0.34% during the day.

Commodity currencies such as the New Zealand dollar and the Australian dollar also rose. Read more

In energy futures, US crude recently rose 0.98% to $80.34 a barrel, and Brent crude reached $84.81, up 1.06% on the day.

Gold prices rose as optimism surrounding China’s major consumer decisions to ease COVID-19 restrictions weighed on the dollar, while resilient US yields overshadowed the advance of non-yielding bullion.

Spot gold rose 1.5 percent to $1,824.29 an ounce. US gold futures rose 1.09% to $1,815.50 an ounce.

Additional reporting by Sinad Caro in New York and Neil Mackenzie in London Additional reporting by Zhi Yu and Ankur Banerjee Editing by Simon Cameron-Moore and Matthew Lewis

Our standards: Thomson Reuters Trust Principles.