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Dollar stable, bond prices ease after Trump attack
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PredictIT shows increased chance of Republican win
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China economic data misses expectations
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Fed's Powell talks later Monday, markets bet on Sept cut
(Updates throughout; refreshes prices at 0838 GMT)
By Iain Withers and Wayne Cole
LONDON/SYDNEY, July 15 (Reuters) - The dollar held
steady on Monday, while long-dated U.S. bond yields rose, as
investors weighed whether an assassination attempt on
presidential candidate Donald Trump increased his chances of
victory.
European stocks opened lower, after weak economic data from
China helped set a cautious tone, while dour updates from
British luxury group Burberry and watchmaker Swatch Group raised
questions about consumer confidence.
Investors have tended to react to the prospect of a Trump
win by pushing Treasury yields higher, in part on the assumption
his economic policies would add to inflation and debt.
Online betting site PredictIT has a Republican win at 67
cents, up from 60 cents on Friday. Benchmark 10-year Treasury
yields fell in price, which pushed the yield up 2 basis points
to 4.208% on Monday.
Eren Osman, managing director of wealth management at
Arbuthnot Latham, said a likelier Trump victory would be seen as
a positive for risk assets, noting a strong rally for bitcoin
since the weekend, but added a word of caution.
"It would be reasonable to suggest it invigorates the Trump
supporters to go vote, but they were probably the population of
voters that were most likely to go and vote anyway," Osman said.
U.S. retail sales data due on Tuesday was likely to be
closely watched for clues on how consumers are faring, after
recent data showed slowing growth, he said.
The dollar index was modestly in positive territory at
104.9, supported by gains in the U.S. currency against the yen
, rising 0.17% to 157.855, following a bout of
suspected intervention last week.
The euro eased slightly to $1.0907, while bitcoin
- seen benefiting from lighter regulation under a Trump
administration - was up about 5% at a two-week high.
European stocks slipped 0.2%, while S&P 500 futures
and Nasdaq futures were both up about half a
percentage point. Japan's Nikkei market was shut for a holiday.
CHINA DATA MISSES
Disappointing economic data kicked off a busy week in China,
where a once-in-five-year gathering of top officials runs from
July 15-18.
Second-quarter growth in the world's second-largest economy
was 4.7% higher than a year earlier, missing a 5.1% analyst
forecast.
Of particular concern was the consumer sector, with
retail sales growth grinding to an 18-month low, while new home
prices dropped at their fastest pace in nine years.
"Markets are hoping that more significant measures could be
announced during this week's plenary session to help the limping
economy and ailing property sector," said Vasu Menon, managing
director of investment strategy at OCBC in Singapore.
The onshore yuan was under pressure at 7.2742 per
dollar. Mainland stocks were broadly flat and Hong
Kong's Hang Seng index fell 1.5%.
Later this week, the United States will release data on
retail sales, industrial production, housing starts and weekly
jobless claims.
Federal Reserve Chair Jerome Powell will appear at the
Economic Club of Washington later on Monday and is bound to be
asked for his reaction to last week's subdued inflation reading.
Markets are pricing in a 96% chance the Fed will cut rates
in September, up from 72% a week earlier.
The European Central Bank meets on Thursday and is
considered near-certain to hold rates at 3.75%, ahead of another
cut seen likely in September.
Among the host of companies reporting earnings this week are
Goldman Sachs, BlackRock, Bank of America, Morgan Stanley,
Netflix and Taiwan Semiconductor Manufacturing.
In commodity markets, gold held at $2,408 an ounce,
just off last week's top of $2,424.
Oil prices inched up, having fallen on Friday amid signs of
progress on a ceasefire between Israel and Hamas.
Brent was broadly flat at $85.04 a barrel, while
U.S. crude edged up 0.1% to $82.27 per barrel.