June 15 New York

The DJIA fell by 14.66 points to 21359.90 while The S&P 500 Index declined by 5.46 points to 2432.46.  The Nasdaq Composite Index lost by 29.391 points to 6165.501.  The yield on 10-year Treasury notes rose 3 basis points to 2.16 percent, after dropping 8.5 basis points Wednesday to 2.13 percent, the lowest level since November.  WTI crude futures fell 0.6 percent to settle at $44.46 a barrel, the lowest in seven months.  It tumbled 3.7 percent in the previous session after data showed U.S. gasoline supplies unexpectedly rose for a second day.  Gold futures sank 1.7 percent to close at $1254.60 an ounce, recording the biggest drop since December 15.  U.S. stocks fell for the fourth time in five days as selling in technology shares pacing declines.  Commodity producers also retreated, as crude oil prices fell to a seven-month low and gold slid more than 1.5 percent.  European stocks dropped to levels last seen in April.  The greenback strengthened and 10-year Treasury yields climbed as the Fed suggested the strength of the labor market will ultimately prevail over weakness in inflation.  Emerging-market equities tumbled more than 1 percent.  Investors resumed selling the major technology shares that have contributed most to equity records this year, as the threat of higher interest rates prompted a shift from growth into value shares.  Softning commodity prices did little bolster arguments that inflation will pick up the pace, even as the U.S. labor market remains on strong footing – raising the specter that central bank officials made a policy error.  Meanwhile, Washington remained in focus as the special counsel investigating Russia’s interference in the 2016 election was said to be planning to interview two top U.S. intelligence officials about whether President Donald Trump sought their help to get FBI to stop a related probe of former National Security Adviser Michael Flynn.  The Bank of Japan concluded a two-day Monetary Policy Meeting on Friday, JST.  The BOJ announced it will continue “Quantitative and Qualitative Monetary Easing (QQE) with Yield Curve Control,” aiming to achieve the price stability target of 2 percent.

Kazuhide Matsuishi

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