* The 10-year US yield reaches a maximum of 13 months
* Gold slightly changed, bitcoin decreases
* Gross slips after two strong weekly gains (price updates, comments)
NEW YORK, March 12 (Reuters) – A global stock index fell on Friday, but will be the strongest weekly gain of five, as Treasury benchmark yields rose to 13-month highs, partly on optimism after a $ 1.9 trillion recovery, the package was signed into law.
Earnings in the stock markets of Shanghai and Tokyo proved difficult to match in Europe and on Wall Street, where banks were the silver line and the Nasdaq performed poorly as the rotation from value to value continued. . Dow Industrials has reached a record.
Rising Treasury yields supported the dollar, while the sale of shares shed light on the attraction of the dollar’s safe haven.
In a context of very weak monetary policy, some analysts expect inflation to return, as the launch of vaccines leads to the reopening of economies, which raises concerns that the stimulus package could overheat the US economy.
US President Joe Biden signed the stimulus legislation before giving a televised address on Thursday night in which he promised an aggressive action to accelerate vaccinations and bring the country closer to normal until July 4.
“We’re back to the idea that higher growth is higher inflation, and investors are a little nervous about current levels of return affecting technology stocks,” said Victoria Fernandez, chief market strategist at Crossmark Global. Investments in Houston.
“It’s about the pace at which yields are rising and the market seems comfortable, with a 10-20 basis point jump in the benchmark yield, if supported by strong data showing an economic recovery.”
The Dow Jones industrial average rose 233.39 points, or 0.72%, to 32,718.98, the S&P 500 lost 3.36 points, or 0.09%, to 3,935.98, and the Nasdaq Composite fell 111.26 points, or 0.83%, to 13,287.42.
The pan-European STOXX 600 index lost 0.26%, and the global MSCI stock level fell by 0.17%.
Shares in emerging markets lost 0.76%. Overnight, the broader MSCI index of Asia-Pacific equities outside Japan closed 0.69% lower, while the Japanese Nikkei rose 1.73%.
10-year US Treasury yields rose more than 1.6% and were on track to see their seventh consecutive weekly increase.
“The trend in rates is even higher, except for an unforeseen setback to vaccines or explicit Fed action,” said Gregory Faranello, chief of U.S. tariffs at AmeriVet Securities in New York.
US producer prices recorded the highest annual gain in February in 2-1 / 2 years, but high unemployment could make it more difficult for businesses to pass on higher costs to consumers.
The 10-year benchmarks fell 30/32 in price to get 1.6317% from 1.527% late Thursday.
Recent, strong market movements give even more importance to next week’s US Federal Reserve meeting for clues to its views on rising yields and the threat of inflation.
In the foreign exchange markets, the dollar index increased by 0.244%, with the euro decreasing by 0.28%, to $ 1.1951.
The Japanese yen weakened 0.51% against the green dollar to $ 109.04, while the pound last traded at $ 1.3923, down 0.48% that day.
Markets are likely to remain volatile in the second quarter, especially for the dollar, which was much stronger than expected earlier this year, said Cliff Zhao, chief strategist at China Construction Bank International.
“The strong US dollar could affect some liquidity conditions in emerging markets,” he said.
The Institute of International Finance on Thursday called on the Fed to provide guidance on managing higher yields to avoid even more exits from emerging markets.
Oil prices have fallen, with both Brent and WTI struggling to maintain weekly performance in positive territory, after rising by more than 10% in the past two weeks.
On Friday, US crude oil fell 0.53% to $ 65.67 a barrel, and Brent was $ 69.22, down 0.59% that day.
Spot gold added 0.1% to $ 1,722.56 an ounce. Silver fell 0.79% to $ 25.87.
Bitcoin was last down 1.43% to $ 56,947.33.
Reporting by Rodrigo Campos; Additional reports by Shashank Nayar and Medha Singh in Bengaluru, John McCrank and Gertrude Chavez-Dreyfuss in New York and Shadia Nasralla in London Edited by Nick Zieminski