Wall St shares fall, oil rises as China lifts quarantine rule

Wall St shares fall, oil rises as China lifts quarantine rule

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NEW YORK/LONDON, Dec 27 (Reuters) – Wall Street’s benchmark S&P 500 and Nasdaq fell on Tuesday after the release of U.S. economic data, while oil prices rose after China said will lift its COVID-19 quarantine rule for arriving passengers, seen as an important step in reopening borders.

U.S. Treasury yields rose after economic data showed the goods trade deficit for November narrowed to $83.35 billion from $98.8 billion the previous month, while a separate report pointed to continued struggles in the housing market. as house prices fell under rising mortgage rates.

Oil pared gains as some U.S. energy facilities shut down by winter storms began to restart after the crude earlier hit a three-week high as of China the latest easing of COVID-19 restrictions has raised hopes of a recovery in demand.

On the first day of a holiday-shortened trading week, rising US interest rates piled on shares in the interest-sensitive technology sector with a heavy weight, according to Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.

“The lack of someone with the conviction to step in and buy right now,” said O’Rourke, who said additional pressure came from a sharp drop in shares of electric car maker Tesla Inc. (TSLA.O).

The Dow Jones Industrial Average (.DJI) rose 113.48 points, or 0.34%, to 33,317.41, the S&P 500 (.SPX) lost 5.67 points, or 0.15%, to 3,839.15 and the Nasdaq Composite (.IXIC) fell 90.23 points, or 0.86%, to 10,407.64.

Markets in some regions, including London, Dublin, Hong Kong and Australia, remained closed after the Christmas holidays.

The pan-European STOXX 600 index (.STOXX) rose 0.19% and MSCI’s gauge of shares around the world (.MIWD00000PUS) gained 0.03%.

Emerging market stocks (.MSCIEF) rose 0.27%. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) closed 0.53% higher, while Japan’s Nikkei (.N225) rose 0.16%.

The benchmark 10-year note rose 7.5 basis points to 3.822% from 3.747% on Friday. The 30-year note was last up 9 basis points at 3.9116% from 3.822%. The 2-year note was last up 6.4 basis points to yield 4.387% from 4.323%.

The dollar pared losses on Tuesday after China said it would lift its COVID-19 quarantine rule for arriving passengers, which also lifted riskier currencies such as the Australian dollar.

The dollar index which measures the greenback against a basket of major currencies, was down 0.01 percent, with the euro up 0.14 percent at $1.065.

The Japanese yen weakened 0.37% against the greenback to 133.36 per dollar, while sterling last traded at $1.2019, down 0.34% on the day.

Commodity currencies such as the New Zealand and Australian dollars also rose. Read more

In energy futures, US crude was recently up 0.98% at $80.34 a barrel and Brent was at $84.81, up 1.06% on the day.

Gold prices rose as optimism surrounding top consumer China’s decisions to ease COVID-19 restrictions weighed on the dollar, while resilient US yields cast a shadow over hard bullion’s progress.

Spot gold added 1.5% to $1,824.29 an ounce. U.S. gold futures rose 1.09% to $1,815.50 an ounce.

Reporting by Sinéad Carew in New York, Nell Mackenzie in London Additional reporting by Xie Yu and Ankur Banerjee Editing by Simon Cameron-Moore and Matthew Lewis

Our standards: Thomson Reuters Trust Principles.

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