NEW YORK, Aug 2 ― Wall Street ended a three-day winning streak and crude prices plunged yesterday as economic data from the US, Europe and China showed demand weakening under inflation pressures, while the looming possibility of recession curbed risk appetite.
The Institute for Supply Management's purchasing managers' index showed US factory activity decelerated in July to its lowest level since August 2020, but remained in expansion territory and long-running supply restraints appeared to be easing. “Is the Fed going to take its foot off the gas pedal and stop raising rates?” That would appear to be what the market is watching.”
The energy sector pulled European stocks lower after disappointing data from the euro zone and China fueled fears of weakening demand and economic contraction. Crude prices headed lower as global factory data weighed on the demand outlook, and as market participants braced for this week's meeting of Opec and other oil producers concerning world crude supply.
Benchmark 10-year notes last rose 15/32 in price to yield 2.5893 per cent, from 2.642 per cent late on Friday.