U.S. stocks slide as Wal-Mart cuts orders while Treasuries gain

Treasury Auction

Treasuries remained higher today as the U.S. sold $35 billion in five-year notes to stronger demand than at last month’s offering of the maturity.

The debt drew a yield of 1.436%, compared with a forecast of 1.422% in a Bloomberg News survey of seven of the Federal Reserve’s 21 primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount sold, was 2.67, versus 2.38 last month and an average of 2.70 at the past 10 sales. Treasuries rose earlier amid bets U.S. budget talks risk a government shutdown. The Fed declined last week to slow its bond buying, saying it needs more evidence of economic gains.

About three stocks fell for every two that rose in the Stoxx Europe 600 Index. Nordea Bank AB slid 2.6% as Sweden sold its remaining 7% stake in the bank for 21.6 billion kronor ($3.4 billion).

The yen rose 0.1% to 98.63 per dollar, appreciating for a fourth successive day. The U.S. currency weakened 0.4% to $1.3525 per euro. The euro was up 0.3% at 133.40 yen.

Krone Slides

The Norwegian krone slid against 14 of 16 major peers after a report showed unemployment rose to 3.6% in July from a revised 3.4% the previous month. It weakened 0.5% to 6.0024 per dollar and fell 0.9% to 8.12348 per euro.

New Zealand’s dollar weakened after the nation’s trade deficit unexpectedly widened. the so-called kiwi fell 0.2% to 82.64 U.S. cents, after a 1.1% slide yesterday that was the biggest loss in a month.

The S&P GSCI Index rebounded following a four-day, 2.1% drop. The commodities gauge pared gains as West Texas Intermediate crude erased an advance of as much as 0.8% after government data showed U.S. inventories unexpectedly increased last week. Crude for November delivery was down 0.4% at $102.75 a barrel after sliding almost 5% over the past four sessions.

Copper for three-month delivery climbed for the first time in four days, gaining 0.7% to $7,197.50 a metric ton on the London Metal Exchange. Aluminum added 0.5% to $1,804.00 a ton, and zinc climbed 0.6% to $1,886 a ton.

www.bloomberg.com

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