Reflation Trades Stall as Bonds Rise, Stocks Mixed: Markets Wrap
- U.S. equities little changed after touching intraday records
- Hoped-for details on fiscal policies remain undelivered
UBS's Haefele: Central Bank Support Remains Important
The trades sparked by the Trump administration’s promises to implement pro-growth strategies continued to churn in place, with major U.S. assets little changed on the day after reversing direction in afternoon trading.
The Dow Jones Industrial Average surged to an all-time high on speculation the White House would deliver details on spending and tax plans before the rally faded as oil majors slumped. Treasuries reversed losses, sending the 10-year yield below 2.40 percent. Central bank commentary set the tone on currency markets, with a Federal Reserve official’s signal that rates may rise in March boosting the dollar before Bank of England figure’s remark that inflation could exceed expectations sent the pound surging. Crude tumbled.