Hong Kong - Stocks in the US and Europe fell for a third day, while 10-year Treasuries halted a two-day slump.
The pound approached a two-year high against the dollar after an industry report showed UK construction activity expanded.
The Standard & Poor’s 500 Index lost 0.3 percent and the Stoxx Europe 600 Index slipped 1.2 percent at 9:33 a.m. in New York.
Ten-year Treasury yields slipped 2.5 basis points to 2.77 percent.
The pound strengthened to as much as $1.6437.
The yen erased earlier losses against the dollar.
Portugal’s five-year note yield fell from a four-week high after a bond exchange. Oil rallied for a third day in New York and gold extended yesterday’s slide.
US reports on payrolls, services and new home sales are due this week.
Data yesterday showed manufacturing grew at the fastest pace in more than two years last month, bolstering the case for the Federal Reserve to start tapering stimulus.
A report due tomorrow is forecast to show oil stockpiles dropped last week in the US, the world’s largest oil consumer, for the first time since September.
Portugal swapped 6.6 billion euros ($9 billion) of short-maturity debt for longer-dated securities, easing the nation’s 2014 funding needs.
“For the coming months, markets will be hesitating, and we expect volatility amid expectations of Fed tapering,” said Guillaume Duchesne, an equity strategist at BGL BNP Paribas SA in Luxembourg.
“Upcoming reports will be on focus. The rebound in equity markets has been quite impressive, particularly in the US, so we expect some pause.”
Mining Shares
Shares in the world’s biggest mining companies fell to the lowest in almost four months as signs the US economy is strengthening increased speculation that the Fed will reduce its monetary stimulus, sending gold down more than 2 percent yesterday.
The 108-member Bloomberg World Mining Index dropped as much as 1.2 percent to the lowest since August 8.
Antofagasta Plc, the copper company controlled by Chile’s billionaire Luksic family, fell as much as 6.1 percent in London trading, while gold producers AngloGold Ashanti Ltd. and Newcrest Mining Ltd. fell as much as 6.5 percent and 7.2 percent respectively.
More than 10 shares fell for every one that gained in the Stoxx 600, with trading volumes 187percent more than the 30-day average, according to data compiled by Bloomberg.
The Stoxx 600 reached its highest level since May 2008 on November 28 and has advanced to 15 percent this year, headed for its best year since 2009.
ThyssenKrupp Sale
ThyssenKrupp AG declined 2.3 percent after the steelmaker raised 882.3 million euros ($1.2 billion) through a share sale.
Sonova Holding AG slipped 1.5 percent as Morgan Stanley cut its rating on the Swiss hearing-aid maker.
Smith & Nephew Plc and Next Plc climbed at least 1.9 percent after brokerages upgraded the shares.
The S&P 500 slid 0.3 percent yesterday.
The equity gauge has rallied 26 percent this year, on pace for its biggest annual gain since 2003, and reached an all-time high on November 27.
The MSCI Emerging Markets Index fell for a second day, slipping 0.9 percent.
The gauge has slipped more than 4 percent since May 22 when the Fed signaled its asset-buying program could be trimmed if the US economy showed sustained improvement.
Policy makers will next gather on December 17-18, when they will consider scaling back the central bank’s $85 billion in monthly bond purchases.
Sales Drop
South Korea’s Kospi index slid 1.1 percent today, the most in more than a week, as Hyundai Motor Co. and Kia Motors Corp. sank more than 4 percent after car sales dropped.
The Jakarta Composite Index snapped a two-day rally, retreating 0.8 percent, and the rupiah weakened 1 percent.
Benchmark gauges in Russia, Turkey and South Africa lost at least 1.5 percent.
Ukraine’s main equity index slid 1.7 percent and the yield on the government’s dollar-denominated notes due in June jumped above 20 percent amid the country’s biggest anti-government protests in almost a decade.
The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong retreated from a nine-month high, decreasing 0.9 percent, as China’s services gauge fell.
The Shanghai Composite Index gained 0.7 percent to the highest since October as a drop in money-market rates eased concern of a cash squeeze.
Brazil’s Ibovespa index slid 0.7 percent after a report showed the economy declined in the third quarter.
Hungary’s forint gained 0.3 percent versus the euro as the country posted a trade surplus in September.
Pound Rallies
The pound gained 0.2 percent to $1.6396 after construction activity rose for a seventh month and the Bank of England said it would assess measures to prevent the build-up of financial- stability risks.
The yen strengthened 0.4 percent to 102.51 per dollar and the euro advanced 0.3 percent to $1.3586.
The Bloomberg US Dolllar Index fell 0.2 percent.
Portugal’s five-year note yield fell 16 basis points to 4.81 percent after touching 4.98 percent yesterday, the highest since November 6.
The yield on 10-year German bunds dropped three basis points to 1.72 percent.
West Texas Intermediate crude climbed 0.5 percent to $94.24 a barrel after jumping 1.2 percent yesterday.
OPEC ministers meeting tomorrow will probably maintain their 30 million barrel- a-day target as demand for the group’s oil may remain near current levels in 2014, said three delegates who spoke on condition of anonymity because the discussions are private. - Bloomberg News