U.S. stocks retreat while euro weakens on comments from Draghi

Pound Strengthens

The British pound strengthened against 15 of 16 major peers, reaching $1.5701 and 1.1726 euros. Bank of England Governor-designate Mark Carney said in written evidence to a parliamentary committee that “the bank will need to design, implement and ultimately exit from unconventional monetary policy measure in a manner that reinforces public confidence.” The Bank of England kept its benchmark rate unchanged at 0.5% today.

Natural gas futures fell for the first time this week, losing 3.9% to $3.285 per million British thermal units, after a government report showed that U.S stockpiles declined by less than forecast last week. Silver, gasoline and corn also dropped at least 1% to lead declines in 17 of 24 commodities tracked by the S&P GSCI Index, sending the gauge down 0.3%.

Emerging Markets

The MSCI Emerging Markets Index of stocks lost 0.5%, declining for a fourth day. India’s Sensex gauge slipped 0.3% after the government forecast the weakest economic growth in a decade. Brazil’s Bovespa index tumbled 1% and Russia’s Micex Index fell 0.3%.

The Shanghai Composite Index slid 0.7%. The gauge, which entered a bull market last month, will retreat about 8% before resuming gains as the surge in Chinese stocks has exhausted buyers, according to Tom DeMark, the creator of indicators to show turning points in securities.

Brazil’s real rallied 1% to an eight-month high against the dollar as a central bank board member said inflation requires attention, spurring speculation that policy makers will let the currency strengthen to contain prices.

Bloomberg News

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