Dollar Snaps 3-Day Gain as Wider Trade Deficit Damps Growth Bets

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The dollar snapped a three-day gain after the U.S. trade deficit widened in March to the highest level in more than six years, raising doubts that the economy was gaining traction.

The data, which showed the trade gap increasing the most in 18 years, followed a report last week that indicated U.S. growth stalled in first quarter. The focus turns to April payrolls data on May 8, as the Federal Reserve weighs whether the economy is strong enough to withstand the first interest-rate increase since 2006.

The Bloomberg Dollar Spot Index, a measure of the U.S. currency against 10 major peers, fell 0.4 percent to 1,168.81 at 5 p.m. in New York after earlier gaining 0.4 percent. The dollar dropped 0.4 percent to $1.1185 per euro.

The yen gained for a second day, adding 0.2 percent to 119.86 yen per dollar.

Source : Bloomberg

Gold Rises for Second Day as Oil Rally Spurs Inflation Concerns

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Gold futures rose for the second straight day as higher energy costs added to speculation that U.S. inflation will start to pick up, reviving demand for the precious metal as a store of value.

Crude oil in New York rose above $60 a barrel for the first time since December. In April, the price soared 25 percent, the most since May 2009, on signs the U.S. supply glut is easing. Investors who in December were unloading gold and bracing for deflation are now stepping up bets that inflation is returning. The dollar’s rally has stalled, and American wages are rising.

Holdings in exchange-traded funds backed by gold are rebounding, and speculators are getting more bullish. The metal has gained 4.5 percent from this year’s low in March as investors weigh expectations for higher consumer costs against signs that the Federal Reserve is getting closer to raising interest rates.

Gold futures for June delivery rose 0.5 percent to settle at $1,193.20 an ounce at 1:53 p.m. on the Comex in New York. On Monday, the price climbed 1 percent, the most in a week.

Source: Bloomberg

U.S. Stocks Join Global Retreat in Equities Amid Data, Greece

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The Standard & Poor’s 500 Index fell the most in more than a month, joining a global decline in equities, as mixed data added to U.S. growth concerns and speculation rose that Greece won’t be able to resolve its debt crisis.

The Standard & Poor’s 500 Index declined 1.2 percent to 2,089.51 at 4 p.m. in New York, near its average price during the past 50 days. The Nasdaq Composite Index dropped 1.6 percent, and the Russell 2000 Index lost 1.4 percent.

Concern has grown over whether Greece can meet its obligation to pay about $1.1 billion due to the International Monetary Fund by May 12. The Stoxx Europe 600 Index fell to its lowest level in two years.

Source: Bloomberg

Greek Drop Leads Europe Stocks Down Amid Growing Default Concern

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A slide in Greek shares led European stocks to their lowest level in two months on concern that debt negotiations will fail to secure funding in time to prevent the nation defaulting.

The Stoxx Europe 600 Index fell 1.5 percent to 391.01 at the close of trading, after earlier rising as much as 1.1 percent on better-than-estimated company results. Shares extended losses after a Greek official said a funding deal won’t be possible until international creditors agree on a common set of demands. Greece’s ASE Index slid 3.9 percent, the most in seven weeks.

German Finance Minister Wolfgang Schaeuble said Greece may not be able complete the work needed for an agreement on financial aid in time for funds to be disbursed by the May 12 deadline for repayment of about 1 billion euros ($1.1 billion) to the International Monetary Fund.

The Stoxx 600 has still risen 14 percent this year amid a weaker euro and unprecedented monetary stimulus, prompting the European Commission to raise its euro-area growth forecast.

The U.K.’s FTSE 100 Index reversed an earlier advance of as much as 1 percent, falling 0.8 percent, as the market reopened after a holiday. The Swiss Market Index gave up gains of as much as 1.2 percent, also dropping 0.8 percent. Germany’s DAX Index slid 2.5 percent to its lowest level in two months.

Source: Bloomberg

U.S. Stocks Join Global Retreat in Equities Amid Data

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U.S. stocks halted a two-day rally, joining a global decline in equities, as mixed data added to U.S. growth concerns and speculation rose that Greece won’t be able to resolve its debt crisis.

Apple Inc. lost 1.6 percent, and semiconductors fell 1.8 percent. The Nasdaq Biotechnology Index slid 1.6 percent. Delta Air Lines Inc. and American Airlines Group Inc. declined more than 2.4 percent. Diamond Offshore Drilling Inc. jumped 6.2 percent.

The Standard & Poor’s 500 Index declined 0.7 percent to 2,099.4 at 12:55 p.m. in New York. The Dow Jones Industrial Average slipped 73.70 points, or 0.4 percent, to 17,996.70. The Nasdaq Composite Index dropped 1.2 percent, and the Russell 2000 Index lost 1.2 percent.

Source : Bloomberg