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GLOBAL MARKETS-U.S. stocks mixed, bonds yields ease as crude prices slip

Credit: REUTERS/BRENDAN MCDERMID

U.S. stock prices were mixed in early Tuesday trading, as oil prices fell from near three-year highs reached after the world's main crude producers failed to set production plans.

By Marc Jones and Alwyn Scott

LONDON/NEW YORK, July 6 (Reuters) - U.S. stock prices were mixed in early Tuesday trading, as oil prices fell from near three-year highs reached after the world's main crude producers failed to set production plans.

Wall Street made a slow restart after the July 4 holiday, while Europe's equity markets spluttered at the prospect of higher inflation and China spooked its tech sector again with another high-profile clampdown .SS.

By 10:11 AM ET, the Dow Jones Industrial Average .DJI was down 204.97 points, or 0.59%, to 34,581.38.

The broad S&P 500 .SPX was off 7.24 points, or 0.17%, at 4,345.1, while the Nasdaq Composite .IXIC added 4.84 points, or 0.03%, to reach 14,644.16.

Bonds yields were lower, despite the risk that higher oil prices could fuel inflation. The yield on 10-year Treasury U.S. notes US10YT=RR was down 5.9 basis points to 1.373%.

Oil prices were lower on profit-taking after having climbed to multi-year highs when OPEC+ producers clashed over plans to raise supply to meet rising global demand.

The Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, abandoned talks after the United Arab Emirates rejected an eight-month extension to output curbs. O/R

Some OPEC+ sources said there would be no output increase in August, while others said a new meeting would take place in coming days and would lead to a boost in August.

Crude prices had earlier reached $77.66 LCOc1 - the highest level since October 2018 - and U.S. crude CLc1 hit its highest since late 2014 at $76.90 a barrel. Oil is up about 50% this year and over 385% since last year's COVID-driven slump.

Early Tuesday in the U.S., Brent crude LCOc1 was down $1.30, or 1.68%, at $75.86 a barrel. U.S. crude CLc1 was down $0.53, or 0.71%, at $74.63 per barrel.

"Without an injection of some extra barrels of oil in the coming weeks, given the tightness of the market, Brent might cross the USD 80/bbl threshold," UniCredit's analysts said.

Petrocurrencies - including Norway's crown NOK=, the Canadian dollar CAD= and Russia's rouble RUB= - all rose. The Australian AUD= and New Zealand NZD= dollars also climbed as the Aussie central bank pared back stimulus.

TECH TROUBLES

Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.1%.

Japan's Nikkei .N225 finished up 0.2% but Australia's S&P ASX200 .AXJO reversed following the RBA's decision to keep interest rates on hold.

Hong Kong .HSI marked its sixth day of losses and China's CSI300 .CSI300 dipped to an almost two-month-low .SS, after the Cyberspace Administration of China ordered an investigation into ride-hailing giant Didi DIDI.N, days after it listed on the New York Stock Exchange.

China will step up supervision of Chinese firms listed offshore, and improve regulation of cross-border data flow and security, Xinhua quoted the cabinet as saying.

"There is still lingering uncertainty from China's tech companies and they are prominent in the Asian market," said Tai Hui, JPMorgan Asset Management's chief Asia market strategist.

World FX rates YTDhttp://tmsnrt.rs/2egbfVh

Global asset performancehttp://tmsnrt.rs/2yaDPgn

Asian stock marketshttps://tmsnrt.rs/2zpUAr4

Oil prices and global inflationhttps://tmsnrt.rs/2Vd6guE

(Additional reporting by Scott Murdoch in Singapore; Editing by Alison Williams, John Stonestreet and Alexander Smith)

((alwyn.scott@thomsonreuters.com; +13322191977; Reuters Messaging: alwyn.scott.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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