Stocks dip, Treasury yields pull-back amid Middle East tension, cooler inflation, US-China ‘deal’

Written by Lawrence Delevin and Lawrence White

(Reuters) -The shares of the streets and the dollar fell on Wednesday, while the US treasury revenues fell, amid new tension in the Middle East, the lack of details in a commercial deal in the United States of China, and the prices of consumers in the United States showing only a moderate increase.

The United States and Iraqi sources said on Wednesday that the United States is preparing to partially evacuate its embassy in Iraq and will allow the military clients to leave the sites around the Middle East due to an increase in security risks in the region. Oil prices have increased by more than 4 % to their highest level in more than two months, with the stability of Brent Futures Futures at $ 69.77 a barrel. [O/R]

Earlier in the day, US President Donald Trump said that the deal that was obtained the fragile truce in the US -Chinese trade war was made after negotiators from Washington agreed and Beijing agreed to a framework covering tariff rates. The deal also removes Chinese export restrictions on rare land minerals and allows Chinese students to reach American universities.

The latest commercial truce provided that investors hope that two of the great powers can reach a permanent solution and prevent further disrupting the market, but the lack of detailed terms leaving a room for possible future tariff conflicts.

Separately, the Consumer Prices Index (CPI) increased by 0.1 % in May in the cheapest gasoline after increasing 0.2 % in April.

For American stocks, the average Dow Jones Industrial Day ended one day of the little volatile trading that has been changed, while the S&P 500 decreased by 0.27 %, and the Nasdaq compound is 0.5 %.

“There are still a lot of risks in stocks, such as additional commercial negotiations, high inflation and growth that is significantly slowing. He wrote in an email: “There are still many possible negative operators there.”

Asian stocks were a little more positive, as the shares of MSCI for Asia and Pacific Ocean -out of Japan increased by 0.7 %, while the Stoxx Standard for Greater European stocks closed by 0.3 %.

The dollar is down, the treasury yield is easy

The US dollar slipped against most major currencies, as the dollar index decreased by 0.3 % to 98.6. The dollar was slightly weakened against the Japanese yen trade at 144.6, while the euro rose 0.5 % to $ 1.148.

Treasury revenues fell for ten years 5.8 basis points to 4.416 %, as the US Treasury Department witnessed strong interest in selling $ 39 billion of notes for 10 years on Wednesday, indicating that debt demand is still strong despite fears that foreign investors are moving away from the market.