Dollar Retreats From Four-Month High Before Feds Announcement

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The dollar retreated following its longest weekly rally of 2015 as a selloff in stocks and commodities fueled concern global growth will sag as the U.S. considers raising interest rates.

The U.S. currency weakened against most major peers amid renewed questions about whether the U.S. faces enough inflation pressure to warrant an increase in borrowing costs. The Federal Reserve meets this week to consider when to tighten monetary policy for the first time since 2006.

The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, declined 0.4 percent to 1,204.57 at 5 p.m. in New York, after rising to 1,212.78 on Friday, the highest since March 19. The gauge gained for the past five weeks, the longest stretch this year.

The dollar weakened 1 percent versus the euro to $1.1088. It earlier reached $1.1129 per euro, its weakest since July 13. The U.S. currency fell 0.5 percent to 123.25 yen.

Source: Bloomberg

Gold Near Five Year Low as Investors Take First Net-Short Position

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Gold traded near a five-year low as speculators were net-short the metal for the first time ever.

Bullion for immediate delivery slipped 0.4 percent to $1,094.92 an ounce at 2:35 p.m. in New York, according to Bloomberg generic pricing. The shift in New York gold futures and options came as speculators increased their bearish wagers to the highest since the U.S. government data begins in 2006.

Prices sank 3.1 percent last week, the most since March, on mounting speculation that U.S. interest rates will climb this year, curbing the metal’s appeal because it doesn’t pay interest like competing assets. Citigroup Inc. lowered its three-month forecast on Monday, while Macquarie Group Ltd. on Friday said gold has lost its appeal as a commodity and as an alternative to currencies. The Bloomberg Dollar Spot Index rose for five straight weeks.

Spot gold touched $1,077.40 on Friday, the lowest since 2010. Speculators held a net-short position of 11,345 contracts in the week ended July 21, according to U.S. Commodity Futures Trading Commission data.

Source: Bloomberg

Asian Stocks Fall as China Rout Triggers Drop in Global Equities

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Asian stocks dropped after a rout in Chinese equities drove global shares lower.

The MSCI Asia Pacific Index declined 0.7 percent to 139.94 as of 9:04 a.m. in Tokyo, extending its five-day fall to 3.7 percent. The Shanghai Composite Index plunged the most in eight years on Monday, intensifying concern government efforts to prop up shares are unsustainable. The turmoil bolstered speculation the Federal Reserve will keep U.S. interest rates lower for longer.

Japan’s Topix index declined 1.2 percent as the yen held three days of gains to trade at 123.27 per dollar. South Korea’s Kospi index retreated 0.6 percent and Australia’s S&P/ASX 200 Index slid 0.4 percent. New Zealand’s NZX 50 Index lost 0.3 percent.

After the 8.5 percent slide in the Shanghai Composite, the Standard & Poor’s 500 Index declined 0.6 percent at the close in New York on Monday, falling for a fifth day. European stocks sank 2.2 percent and emerging-market shares lost 2 percent.

Source: Bloomberg

Japanese Stocks Follow Global Equities Lower After Chinese Rout

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Japanese stocks fell after a rout in Chinese markets drove global equities lower, damping investor demand for firms that rely on China for sales.

The Topix index lost 1 percent to 1,621.82 as of 9:01 a.m. in Tokyo, with all but two of its 33 industry groups falling. The Nikkei 225 Stock Average declined 0.8 percent to 20,179.93. The yen rose the most in nearly three weeks after the Shanghai Composite Index sank 8.5 percent

The biggest crash in Chinese shares in eight years led equities lower worldwide and selling spread to the dollar as the turmoil bolstered speculation that the Federal Reserve will keep U.S. interest rates lower for longer. The yen traded 123.28 per dollar after strengthening Monday by the most against the greenback since July 8, when the previous rout in Chinese markets abated.

The decline in Chinese shares bolstered concern that demand for raw materials will slip in the world’s second-biggest economy. The Bloomberg Commodity Index fell to a 13-year low Monday, while oil extended declines in a bear market. Rising Iraqi exports and a rebound in U.S. drilling also weighed on sentiment.

Futures on the Standard & Poor’s 500 Index rose less than 0.1 percent after the underlying U.S. measure lost 0.6 percent on Monday. The Stoxx Europe 600 Index slumped 2.2 percent.

Source: Bloomberg

U.S. Stocks Drop After China Shares Selloff on Growth Concern

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U.S. stocks fell, with equities posting their longest losing streak since January, after the biggest slump in eight years for Chinese shares amid concern over the nation’s economic growth.

The Standard & Poor’s 500 Index slid 0.6 percent to 2,067.85 at 4 p.m. in New York, after touching its average price during the past 200 days.

The S&P 500 has declined for four weeks out of five, and closed Monday 3 percent away from its May record. The benchmark measure is up 0.2 percent for the month. The bull market that already rivals anything since World War II in duration is showing signs of fatigue, as U.S. equities are being pushed along by the fewest stocks in more than 15 years.

More than 100 percent of this year’s increase in the S&P 500 is attributable to two sectors, health-care and retail. That’s the tightest clustering for an advancing year since at least 2000, data compiled by Bloomberg show.

Source: Bloomberg