Compulsory yields increased and Wall Street went from small gains to losses before the opening bell Thursday after increasing the American debt markets the day before.
The term contracts for the industrial average of Dow Jones fell 0.5% in trading prior to the market, while the term contracts for the S&P 500 and the NASDAQ each slipped by 0.3%.
US markets also react to Passing at the start of the house Thursday Republicans several dollars Bill of expenses, which aims to extend some 4.5 billions of dollars in tax lightening of the first term of President Donald Trump in 2017 while adding others. The bill, which has more stimulating requirements for Medicaid and other programs, should undergo changes when it arrives in the Senate for a vote.
The legislation also includes a faster decline in production tax credits for clean electricity projects, which have sent actions of solar companies. The first solar slipped more than 7%, while Sunrun lost almost a third of its value. The energy technology company Enphase Energy has dropped by 15%.
Health care actions also dropped early Thursday after the Centers for Medicare & Medicaid Services said that he immediately extended his Audit Midicare Plans Audit. Unitedhealth Group dropped by 3.5% and Humana fell 4.8%.
US markets are significant losses compared to a day earlier for concerns about the cost of the invoice and the already growing debt of the United States. The non -partisan congress budget office said the tax provisions would increase federal deficits by 3.8 billions of dollars during the decade.
Treasury yields checked on Thursday after having bitten the day before when the US government published the results for its last 20 -year bond auction. These bonds help pay the government bills and auctions had to offer a return of more than 5% to attract enough buyers.
The 10 -year yield was 4.62% early Thursday, compared to 4.51% two days ago, a major decision on the bond market.
The increase in yields for the US Treasury bonds is a coal mine canary, said Stephen Innes of Spi Asset Management in a comment.
“The United States still has the largest markets, the deepest liquidity, and the inertia of the dollar working in its favor. But even inertia cannot exceed compound interest and structural deficits forever,” he wrote.
The drop in the US dollar weighed on Asian regional markets, according to some analysts, as some Asian nations have major assets in dollars. It also affects Asian exporters, such as Japanese car manufacturers and electronics companies, reducing the value of their income abroad when converted to Yen.
In the currency trade, the US dollar fell to 143.35 Japanese yen from 143.68 yen. He was exchanging at 150 levels of yen a year ago. The euro slipped to $ 1,1312.
The reference of Japan Nikkei 225 lost 0.8% to finish at 36,985.87.
Hang Seng of Hong Kong lost 1.2% to 23,544.31, while the Shanghai composite fell 0.2% to 3,380.19.
Australia S&P / ASX 200 slipped from 0.5% to 8,348.70. South Korea Kospi dropped from 1.2% to 2,593.67.
In Europe at noon, CAC 40 in France slipped 1.1%, while the German Dax decreased by 1%. The FTSE 100 of Great Britain dropped by 0.8%.
The price of oil fell on media reports that OPEC + was considering another increase in production. Benchmark US Crude lost 94 cents for $ 60.63 per barrel. Brent Brut, the international standard, fell from 99 cents to $ 63.92 per barrel.
