© Reuters. FILE PHOTO: A man on a bicycle stands in front of an electronic board showing Shanghai stock index, Nikkei share price index and Dow Jones Industrial Average outside a brokerage in Tokyo, Japan September 22, 2022. REUTERS/Kim Kyung-Hoon
By Sinéad Carew and Nell Mackenzie
NEW YORK/LONDON (Reuters) – Wall Street’s benchmark and the Nasdaq fell on Tuesday after the release of U.S. economic data, while oil prices rose after China said it would scrap its COVID-19 quarantine rule for inbound travellers, which was seen as a major step in reopening its borders.
U.S. Treasury yields rose after economic data that showed the advance goods trade deficit for November narrowed to $83.35 billion from the prior month’s $98.8 billion, while a separate report pointed to continued struggles for the housing market as home prices fell under rising mortgage rates.
Oil pared gains as some U.S. energy facilities shut by winter storms began to restart 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, the rise in U.S. rates put pressure on shares in the heavy-weight rate sensitive technology sector, according to Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
“It’s a lack of anybody with the conviction to step in and buy right now,” said O’Rourke, who said further pressure came from a sharp decline in shares of electric car maker Tesla (NASDAQ:) Inc .
The rose 113.48 points, or 0.34%, to 33,317.41, the S&P 500 lost 5.67 points, or 0.15%, to 3,839.15 and the dropped 90.23 points, or 0.86%, to 10,407.64.
Markets in some regions including London, Dublin, Hong Kong and Australia remained shut after the Christmas holiday.
The pan-European index rose 0.19% and MSCI’s gauge of stocks across the globe gained 0.03%.
Emerging market stocks rose 0.27%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.53% higher, while rose 0.16%.
Benchmark 10-year notes were up 7.5 basis points at 3.822%, from 3.747% on Friday. The 30-year bond was last up 9 basis points to yield 3.9116%, from 3.822%. The 2-year note was last up 6.4 basis points to yield 4.387%, from 4.323%.
The dollar pared losses on Tuesday after China said it wouldscrap its COVID-19 quarantine rule for inbound travellers, which also boosted risk-related currencies such as the Australian dollar.
The , which measures the greenback against a basket of major currencies, was down 0.01%, with the euro up 0.14% at $1.065.
The Japanese yen weakened 0.37% versus the greenback at 133.36 per dollar, while Sterling was last trading at $1.2019, down 0.34% on the day.
Commodity currencies such as the New Zealand and Australian dollars also moved higher.
In energy futures, recently rose 0.98% to $80.34 per barrel and was at $84.81, up 1.06% on the day.
Gold prices rose as optimism surrounding decisions by top consumer China to ease COVID-19 restrictions weighed on the dollar, while resilient U.S. yields cast a shadow over non-yielding bullion’s advance.
added 1.5% to $1,824.29 an ounce. U.S. gained 1.09% to $1,815.50 an ounce.
