US stocks mixed, while euro slides on France worries and Brazil markets surge
SPY•US stocks were mixed in early trading, with the Dow down 0.57%, the S&P 500 up 0.14% and the Nasdaq up about 0.5%. The euro touched a 17-month low, while Brazil’s iShares MSCI Brazil ETF jumped about 14%.
1. Stocks and currencies diverge
US stocks were mixed in early trading as weaker-than-expected US jobs data cooled expectations for a Federal Reserve rate increase this month. The euro fell as much as 0.8% to $1.1160, its lowest level in 17 months, on concerns about France’s rising debt and political gridlock.
2. Brazil markets rally
Brazilian stocks and the real surged after Senator Flavio Bolsonaro outperformed poll predictions in the first round of the presidential election and advanced to a runoff against incumbent Luiz Inacio Lula da Silva. The iShares MSCI Brazil ETF jumped about 14% as Bolsonaro’s lead raised hopes of a more business-friendly policy agenda.
3. Yields and oil remain elevated
The dollar index rose 0.4%, supported by the euro’s decline and elevated US Treasury yields. The 10-year Treasury yield rose 2.5 basis points to 5.3%, while Brent crude fell 0.65% to $101.57 a barrel.
