GLOBAL MARKETS-Stocks and Treasury yields fall; dollar advances

By Herbert Lash and Marc Jones

NEW YORK / LONDON (Reuters) – Global stock indices and U.S. Treasury yields fell on Tuesday as low trading volume, a pause in economic news and the lack of a catalyst led to a sell-off. of investors concerned that the improvement in the markets is limited.

* The Nasdaq, with a strong technology component, fell to 2.7%, marking its biggest daily decline in six weeks, while the return of the 10-year Treasury bond fell to a low of 1.557%, a movement that would normally underpin to technology stocks.

* Palladium prices soared to record highs, fueled by concerns about tight supplies of the metal as demand gradually improves.

* The Refinitiv / CoreCommodity CRB Index traded near three-year highs as commodity prices continue to climb as investors gamble on rising demand as economies reopen. The rise in the prices of basic resources has led to talk of a rebound in inflation.

* As investors sold stocks they bought government debt, driving up Treasury prices and dropping yields.

* “There is not much conviction among traders about which direction markets should take from here,” said Patrick Leary, chief market strategist and senior trader at Incapital. “We have internalized a great deal of reopening optimism.”

* MSCI’s benchmark for global equity markets lost 1.23%.

* On Wall Street, the Dow Jones Industrial Average was down 0.5%, the S&P 500 was down 1.29% and the Nasdaq Composite was down 2.72%.

* In currency markets, the dollar was recovering some ground to partially undo last month’s long decline, as investors squared their positions ahead of employment data to be released on Friday.

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* The dollar index was up 0.314%, while the euro was down 0.38% at $ 1.2015. The yen weakened 0.22% against the dollar to 109.31 units per dollar.

* Meanwhile, oil prices rose after more states in the United States eased restrictions related to the pandemic and the European Union sought to attract travelers, although growing cases of COVID-19 in India limited the increases.

* Brent futures were up $ 1.22 at $ 68.78 a barrel. US crude futures were up $ 1.12 to $ 65.61 a barrel.

(Report by Marc Jones, Edited in Spanish by Manuel Farías)