Stocks mixed…Focus on bond yields…Turkish companies agree to price cuts
NEW YORK (AP) – Stocks are mixed in early trading as markets continue to absorb the shakeout from last week’s rapid rise in interest rates. Higher interest rates can slow the economy, and the International Monetary Fund cited them late Monday when it downgraded its forecast for global economic growth. It also cited ongoing trade battles as another reason.
NEW YORK (AP) – Shares in raw-material producers are posting some of the day’s sharpest losses after PPG warned of higher costs and softer demand from China. Technology stocks regained some of their sharp losses from last week.
NEW YORK (AP) – Investors have been keenly focused on bond yields since last week, when they rose sharply following several encouraging reports on the economy. If rates go high enough, they can drive investors away from stocks and into bonds. The yield on the 10-year Treasury dipped to 3.21 percent from 3.22 late Friday. It traded at just 3.05 percent last Tuesday, and the speed of the recent rise has been more concerning to investors than the degree. Rates are still relatively low, and the Federal Reserve’s main interest rate is still less than half of what it was in 2006 before the Great Recession.
THE HAGUE, Netherlands (AP) – A Dutch appeals court has upheld a landmark ruling that ordered the Dutch government to cut the country’s greenhouse gas emissions by at least 25 percent by 2020 from benchmark 1990 levels. The original June 2015 ruling came in a case brought by the environmental group Urgenda on behalf of 900 Dutch citizens. Similar cases are now underway in several countries around the world.
ANKARA, Turkey (AP) – Turkey’s finance minister says several private sector firms have agreed to reduce their prices to support the government’s effort to bring down painfully high inflation. He also announced that the government would not raise electricity and gas prices until the end of the year as part of the campaign to rein in consumer prices. The announcement came after Turkey’s annual inflation rate jumped to nearly 25 percent in September – up from some 18 percent recorded in August.