U.S. stocks retreat with gold, oil as euro strengthens

European Movers

Salzgitter AG sank 12% as Germany’s second-largest steelmaker forecast a pretax loss of about 400 million euros ($530 million) this year amid a slump in demand. Lanxess AG slid 4.3% after the German chemical maker cut its profit outlook. Fresnillo Plc, the biggest primary silver producer, tumbled 11% in London trading as profit fell.

The volume of shares changing hands in Stoxx 600 companies was 6.3% lower than the 30-day average, according to data compiled by Bloomberg, and about 10% lower for the S&P 500.

The MSCI Emerging Markets Index fell for the first time in four days, losing 1%. India’s Sensex Index dropped 2.3% and main gauges in Russia, Taiwan and the Philippines slid more than 1%. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong lost 0.8% while the Shanghai Composite Index rose 0.5%.

Aussie Rallies

The Aussie gained against 15 of 16 major peers as traders pared bets on a reduction in Australian borrowing costs after Reserve Bank Governor Glenn Stevens lowered the benchmark interest rate to a record and refrained from signaling there was room for more cuts. Australian bonds slid, with the 10-year yield rising 11 basis points to 3.72%.

Stevens cut the overnight cash-rate target by a quarter percentage point to 2.5% and said the RBA’s board “has previously noted that the inflation outlook could provide some scope to ease policy further.” Last month he said the outlook for prices “may provide some scope for further easing.”

New Zealand’s currency rose after the nation’s government said it expects the economy will avoid any immediate harm from the suspension of sales of some dairy products to China after the identification of a bacterial contamination that may cause botulism. The kiwi strengthened 1.1% to 79.12 U.S. cents after weakening for six straight days.

www.bloomberg.com

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