Gold traders are the most bearish in nine weeks after Federal Reserve policy makers backed plans to taper stimulus if the economy strengthens, eclipsing a surge in demand for physical metal that drove prices to a two-month high.
Russian government bonds rose for the first time in five days, paring their steepest weekly decline in two months, as rising oil offset speculation the U.S. will reduce stimulus as early as next month.
Computer malfunctions shook American equity trading for the second time this week, freezing thousands of securities listed on the Nasdaq Stock Market for three hours and raising fresh concerns about the fragility of exchanges.
U.S. Treasury Secretary Jacob J. Lew said he sees no reason to believe today’s Nasdaq Stock Market trading halt had “any of the more frightening aspects to it, but we’re going to have to learn all the facts.”
Treasury yields reached two-year highs as reports showed a strengthening jobs market and a gain in economic indicators, suggesting the recovery is strong enough for the Federal Reserve to begin withdrawing monetary stimulus.
U.S. Treasury Secretary Jacob J. Lew said a failure by Congress to raise the $16.7 trillion debt limit would “have disastrous effects for our nation” and could put at risk payments to Social Security recipients and veterans.
The rout in gold that wiped out $56 billion of value this year is spurring consumer demand in China and India, the biggest buyers, and leading JPMorgan Chase & Co. and Bank of America Corp. to say prices are bottoming.
SkyBridge Capital LLC, organizer of the biggest U.S. hedge-fund event, raised its assets by 24 percent to $8.3 billion and allocated more money to Asian managers ahead of its second conference in the region.