Global Markets Mixed; Treasury Yields Fall as Expectations for Interest-Rate Cut Mount
By Dow Jones Newswires StaffStock markets broadly fell back Thursday after recent gains. U.S. stock futures were flat to marginally down, Asian markets closed lower but European bourses eked out small gains. Treasury yields fell to their lowest level in a week as investors increasingly bet that the Federal Reserve will cut interest rates in September which is also putting pressure on the dollar. U.S. producer price data later will offer further clues on cost pressures in the economy. GDP readings for the U.K. came in, with the eurozone also due. Norway's Norges Bank, meanwhile, left its key borrowing rate unchanged, as expected.The pan-European Stoxx Europe 600 gained 0.1% in morning trading reflecting small gains across major national indexes. The U.K.'s FTSE 100 lost 0.2%.Treasury yields fell to their lowest in a week. U.S. Treasury Secretary Scott Bessent reiterated his call for a 50 basis-point rate cut in September in an interview with Bloomberg Wednesday. The 10-year Treasury yield was recently down 2 basis points to a one-week low of 4.215%, while two-year yields fell to a 10-day low of 3.664%, Tradeweb data show.The dollar continued its fall against a basket of major currencies. President Trump said Wednesday that he could name the next Fed chair a "little bit early" and was down to three or four potential candidates to replace Jerome Powell, according to media reports, amid the continuing pressure from the administration to cut rates. The DXY dollar index was last down 0.1% to 97.725 after hitting a two-and-a-half-week low of 97.632 on Wednesday.Bitcoin eased a touch after reaching a record high overnight amid a recent broad return to risk appetite. Bitcoin has also been supported by an improved regulatory outlook for digital assets. It was last down 0.9% to $121,718 after hitting a record high of $124,480 overnight, LSEG data show.Sterling rose to a two-week high against the euro after data showed the U.K. economy grew by more than expected in the second quarter, potentially reducing the prospects for the Bank of England to continue cutting rates after a narrow vote to cut last week. The euro fells to a low of 0.8610 pounds after the data from 0.8620 beforehand. Against the dollar, sterling was up to $1.3585 from $1.3572. U.K. gilts were little moved.Oil prices were up modestly as investors look ahead to Friday's U.S.-Russia summit, though worries over a widening global surplus are keeping sentiment subdued. Brent crude and WTI were both up 0.5% to $65.96 and $62.99 a barrel, respectively. The benchmarks hit two-month lows in the previous session after a surprise build in U.S. crude inventories and the IEA's forecast for an even larger surplus ahead.Write to Barcelona Editors at [email protected]