Stocks snap winning streak; yen rises on safe-haven bid

Thu Jun 9, 2016 5:06pm EDT
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By Saqib Iqbal Ahmed

NEW YORK (Reuters) - Bond prices and the yen rallied on Thursday as investors sought the safety of low-risk assets, while crude oil prices and stocks retreated after recent gains.

An index of world equity markets snapped a five-day winning streak. Oil prices dipped as a firmer dollar sparked profit-taking after three sessions of gains.

The yen, which investors prefer in times of market uncertainty, reached a three-year peak against the euro EURJPY= and a five-week high versus the U.S. dollar JPY. But late in the U.S. session, the Japanese currency fell marginally against the dollar.

"It's generally a cautious mood today. You have stocks lower and yields lower," said Eric Viloria, currency strategist at Wells Fargo Securities in New York.

The dollar index, which tracks the greenback against six major currencies .DXY, rebounded from five-week lows set on Wednesday. It was up 0.54 percent at 94.095.

The greenback was supported by an unexpected drop in U.S. jobless claims and a stronger-than-expected rise in wholesale sales in April. The data soothed some concerns about the U.S. economy decelerating in the second quarter.

Oil, which earlier hit a 2016 high on supply worries, was pressured by the firmer dollar. A stronger dollar makes oil more expensive for holders of other currencies.

"So far this looks like a modest technical correction following three days of gains, rather than a major reversal," said Tim Evans, energy futures specialist at Citi Futures in New York.   Continued...

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 9, 2016.  REUTERS/Brendan McDermid