US stocks are falling along with bonds, the dollar is rising

U.S. stocks drifted lower in light trading, while Treasuries also declined as investors weighed concerns about global growth against potential progress in trade talks. The S&P 500 edged toward its first decline in four sessions after economic data in both Europe and U.S. came in below expectations, reigniting worries about the world economy. Facebook contributed the most to the benchmark’s slide. Health-care stocks were pulled down as Johnson & Johnson dropped after the company said it received subpoenas from federal prosecutors tied to its talc baby-powder products.

The 10-year Treasury yield rose above 2.68 percent, and the dollar gained against major currencies amid reports signaling uneven progress in trade talks between the U.S. and China as a March 1 deadline for more tariffs approaches. The Aussie dollar dropped on reports China’s Dalian port banned coal imports from Australia. West Texas oil fell below $57 a barrel after an industry report showed American crude stockpiles continue to swell.

Investors are also closely watching incoming economic numbers to see how they may nudge central bankers that are in a wait-and-see stance. At the same time, the slow but apparently steady progress in trade negotiations between the world’s biggest economies could set up risk assets for disappointment as some analysts see a truce priced into markets, with the MSCI’s global gauge of stocks up about 15 percent since Christmas Day.

In Europe, lenders led shares lower as minutes of the latest ECB meeting showed policy makers setting up their March gathering as a key session to render their verdict on a regional slowdown and whether new long-term bank funding is required.

U.S. Stocks Edge Lower; Bonds Fall, Dollar Rises, Bloomberg, Feb 21