Stocks ease as investors eye economic data, rate hikes

NEW YORK/LONDON, Oct 10 (Reuters) – The MSCI global index of stocks (.MIWD00000PUS) lost ground on Monday while the dollar gained slightly as investors waited for economic data and earnings season and after Russian missiles pounded cities across Ukraine.

Any lingering hopes that the Federal Reserve could shift to a softer stance toward monetary policy appeared to be extinguished on Friday as the September jobs report pointed to a persistently tight labour market. read more

The dollar held steady against a basket of currencies, while a number of market-based measures of investor risk nervousness showed another increase.

On Monday, Russian missiles killed civilians and knocked out power and heat in cites across Ukraine in apparent revenge strikes after President Vladimir Putin declared a blast on Russia’s bridge to Crimea to be a terrorist attack. read more read more

“In general investors in the U.S. and aropausehe world are taking a puase and waiting for the next round of economic data and earnings,” said Oliver Pursche, adviser at Wealthspire Advisors in Westport, Connecticut.

The U.S. third-quarter earnings seset to kick off with four of the biggest biggest banks reporting on Friday. The largest U.S. banks are expected to report a decline in profits as the economy slowed and volatile markets put the brakes on dealmaking. read more

The MSCI All-World index (.MIWD00000PUS) was last down 1.0% and poised for a fourth straight day of losses. The pan-European STOXX 600 (.STOXX) was down 0.3%, having skimmed one-week lows. Emerging market stocks (.MSCIEF) lost 1.63%.

Wall Street’s three major indexes were losing ground, with the chip sector pushing Nasdaq down the most after the Biden administration published a sweeping set of export controls on Friday. They included a measure to cut off China from certain semiconductors made anywhere in the world with U.S. equipment. read more read more

The Dow Jones Industrial Average (.DJI) fell 108.18 points, or 0.37%, to 29,188.61, the S&P 500 (.SPX) lost 31.94 points, or 0.88%, to 3,607.72 and the Nasdaq Composite (.IXIC) dropped 145.30 points, or 1.36%, to 10,507.11.

Wall Street had already declined on Friday after the upbeat payrolls report cemented expectations for another large rate hike. read more

Chicago Fed President Charles Evans said on Monday that U.S. Fed officials are closely aligned on the need to raise the target policy rate to around 4.5% by early next year, unless data upends current projections.

Minutes of the Fed’s last policy meeting will be published this week and could offer a steer on rate-setters’ thinking about the likely path of monetary policy.

The dollar index, which measures the greenback against a basket of currencies, was recently up 0.3% while the euro was down 0.43% to $0.9699.

The Japanese yen weakened 0.26% versus the greenback at 145.71 per dollar.

Sterling was last trading at $1.1045, down 0.35% on the day after the Bank of England announced a surprise decision to shore up the gilt market ahead of the end of an emergency bond-buying programme on Friday and the government brought forward the publication of independent budget forecasts. read more read more

Oil prices were lower as investors weighed potentially tight supply against economic storm clouds that could foreshadow a global recession and erosion of fuel demand. read more

U.S. crude recently fell 0.18% to $92.47 per barrel and Brent was at $97.55, down 0.38% on the day.

Gold prices fell as an elevated dollar and solidifying bets for an aggressive Fed interest rate hike pushed the non-yielding bullion to its lowest level in a week.

Spot gold dropped 1.6% to $1,667.49 an ounce. U.S. gold futures fell 1.91% to $1,668.00 an ounce.

Reporting by Sinead Carew in New York and Amanda Cooper in London
Additional reporting by Wayne Cole in Sydney
Editing by Andrew Heavens and Matthew Lewis

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