Tuesday, 12 December, 2017

US Treasurys lower as FOMC minutes takes center stage

US stocks end mixed amid Fed minutes, economic data US dollar sinks on Fed's inflation concern, rate path
Nellie Chapman | 23 November, 2017, 11:26

Some Fed officials think inflation could stay below their 2% annual target for longer than many expected, raising questions about the pace of rate increases next year, minutes from the central bank's October meeting showed. The dollar index .dxy , which tracks the greenback against six major currencies, fell 0.75 percent, to its lowest since October 20.

On the economic front, USA new orders for manufactured durable goods in October decreased 2.8 billion US dollars or 1.2 percent to 236 billion dollars, missing market projection of a 0.4-percent gain, the Commerce Department announced Wednesday. A few Fed leaders think rates should stay where they are until there is more evidence inflation is rising, showing the concerns that the US inflation is falling short of expectations despite the jobless rate falling to the lowest level in almost 17 years. As December rate hike is priced in the market, investors will look for next year's hike expectations.

WALL STREET: U.S. stocks finished mostly lower on Wednesday retreating from their latest record highs.

When the markets closed, Dow Jones Industrial Average was at 23526, S&P 500 at 2597 and Nasdaq Composite at 6867.

While a move in December to between 1.25 and 1.5 percent is still nearly fully priced in, Fed fund futures 0#FF: rallied to show rates at just 1.75 percent by the end of next year.

The markets also witnessed low volumes ahead of the Thanksgiving holiday on Thursday.

US crude futures CLc1 eased back 12 cents to $57.90 a barrel, after jumping 2 percent on Wednesday to ground last trod in mid-2015.

Silver was up 1 percent at $17.11 an ounce.

Oil prices paused after hitting their highest in more than two years after the shutdown of one of the largest crude pipelines from Canada cut supply to the United States.

CURRENCIES: The dollar rose to 111.35 yen from 111.24 yen. Brent crude LCOc1 dipped 18 cents to $63.14 a barrel.