GLOBAL MARKETS-Yields, stocks down with focus on growth, central banks

  • Reuters
  • Stock Market News
GLOBAL MARKETS-Yields, stocks down with focus on growth, central banks
Credit: © Reuters.

* MSCI global stock gauge down, Wall Street falls

* German 10-year yield goes further below zero

* New Zealand dollar tumbles as central bank flags rate cut

* China's industrial profits shrink most since late 2011

* Oil prices fall after surprise U.S. crude stock build (Updates with close of U.S. markets)

By Lewis Krauskopf

NEW YORK, March 27 (Reuters) - Benchmark U.S. Treasury yields sank to fresh 15-month lows on Wednesday and German bond yields fell further below zero after more dovish talk from central banks, while a gauge of world stocks fell amid new signs of concern for the global economy.

China's industrial firms posted their worst slump in profits since late 2011 in the first two months of this year, data showed. New Zealand dollar tumbled after the country's central bank flagged a possible cut in interest rates, becoming the latest to turn dovish in the face of slowing global growth.

Meanwhile, European Central Bank President Mario Draghi said the ECB could further delay an interest rate hike and may look at measures to mitigate the side-effects of negative interest rates, warning that risks to growth were on the rise. were shaken on Friday, when the 3-month U.S. Treasury yield exceeded the yield on the 10-year note, an inversion of the yield curve that is widely seen as an indicator of a recession.

“People are still trying to figure out if the inverted yield curve means anything or not,” said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

“That's the theme that has been happening for the last few days and I think is continuing today, is trying to weigh those global economic concerns,” Carlson said.

On Wall Street, the Dow Jones Industrial Average .DJI fell 32.14 points, or 0.13 percent, to 25,625.59, the S&P 500 .SPX lost 13.09 points, or 0.46 percent, to 2,805.37 and the Nasdaq Composite .IXIC dropped 48.15 points, or 0.63 percent, to 7,643.38.

The pan-European STOXX 600 index .STOXX rose 0.02 percent, as the region's bank shares gained. gauge of stocks across the globe .MIWD00000PUS shed 0.42 percent.

Turkey's main share index .XU100 dropped 5.7 percent, as foreign investors in need of lira flocked to sell stocks and bonds, analysts said. 10-year Treasury yields slid as investors remained focused on central bank dovishness globally. 10-year notes US10YT=RR last rose 9/32 in price to yield 2.3806 percent, from 2.412 percent late on Tuesday.

Germany's long-dated borrowing costs hit 2-1/2-year lows below zero percent. Germany sold debt with a negative yield for the first time since 2016. New Zealand dollar was on pace for its worst fall in seven weeks against its U.S. counterpart, as the country's central bank unexpectedly said its next move in interest rates was more likely to be a cut, abandoning its neutral stance at a policy review. market is anticipating that there is going to be dovishness from (the Reserve Bank of New Zealand) because there has been dovishness from other developed market central banks," said Thierry Wizman, global interest rates and currencies strategist at Macquarie Limited in New York. dollar index .DXY , which measures the U.S. dollar against a basket of currencies, rose 0.16 percent, with the euro EUR= down 0.14 percent to $1.1248.

Oil prices slumped after government data showed U.S. crude inventories grew more than expected last week as a Texas chemical spill hampered exports. crude CLcv1 settled down 0.9 percent at $59.41 per barrel and Brent LCOcv1 settled at $67.83, down 0.2 percent.

Palladium prices XPD= plummeted as investors worried that prices had risen too far too fast and breaks below technical levels triggered automatic selling. GRAPHIC-Germany's 10-year Bund yield GRAPHIC-Overnight lira rate above 700 pct GRAPHIC-Turkish CDS up more than 100 bps in past week GRAPHIC-World FX rates in 2019 GRAPHIC-Asian stock market


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