* The 10-year US yield peaks in 13 months
* Gold has changed little, bitcoin falls
* Crude slips after two strong weekly gains (price updates, comments)
NEW YORK, March 12 (Reuters) – A worldwide stock index fell on Friday, but is expected to record its strongest weekly gain at five, while benchmark Treasury yields rose to 13-month highs, in part due to optimism after a $ 1.9 trillion package recovery was signed into law.
Gains in the Shanghai and Tokyo stock markets proved difficult to match in Europe and Wall Street, where banks were the silver line and the Nasdaq performed lower as the rotation of value growth continued. Dow industrialists hit a record.
The rise in Treasury yields supported the dollar, while the sale of shares shed light on the appeal of the safe haven of the greenback.
In a context of super-weak monetary policy, some analysts expect inflation to rise as vaccine deployment leads to the reopening of economies, raising concerns that the stimulus package could overheat the US economy. .
U.S. President Joe Biden signed the stimulus legislation before delivering a televised speech Thursday night pledging to take aggressive steps to speed up vaccinations and bring the country back to normal on July 4th.
“We’re back to the idea that more growth is more inflation and investors are a little nervous about current performance levels affecting technology stocks,” said Victoria Fernandez, market strategist at Crossmark Global Investments in Houston.
“It’s about the pace at which yields grow and the market seems comfortable with another 10-20 basis point jump in benchmark yield if supported by solid data showing an economic recovery.”
The Dow Jones Industrial Average rose 233.39 points, or 0.72%, to 32,718.98, the S&P 500 lost 3.36 points, or 0.09%, to 3,935.98, and the Nasdaq Composite fall 111.26 points, or 0.83%, to 13,287.42.
The pan-European STOXX 600 index lost 0.26% and the value of MSCI shares worldwide fell 0.17%.
Shares in emerging markets lost 0.76%. Overnight, MSCI’s broader Asia-Pacific stock index outside of Japan closed 0.69% lower, while Japan’s Nikkei rose 1.73%.
10-year U.S. Treasury yields rose above 1.6% and were on track to post their seventh consecutive weekly rise.
“The rate bias is even higher if there is no unforeseen decline in vaccines or explicit Fed action,” said Gregory Faranello, head of U.S. rates at AmeriVet Securities in New York.
U.S. producer prices saw their biggest annual rise in nearly 2-1 / 2 years in February, but still high unemployment could make it harder for companies to pass on higher costs to consumers.
Banknotes to 10-year benchmark fell last 30/32 in price to 1.6317%, from 1.527% late on Thursday.
Recent and strong market movements give even more importance to next week’s US Federal Reserve meeting to get clues about their views on rising yields and the threat of inflation.
In the foreign exchange markets, the dollar index rose 0.244%, with the euro up 0.28% to $ 1.1951.
The Japanese yen weakened 0.51% against the green dollar ($ 109.04 per dollar), while the pound sterling traded at $ 1.3923 (0.48% on the day).
Markets are likely to remain volatile in the second quarter, mostly due to the dollar, which was much stronger than expected earlier this year, said Cliff Zhao, chief strategist at China Construction Bank International.
“The strong US dollar may affect some liquidity conditions in emerging markets,” he said.
The Institute of International Finance on Thursday urged the Fed to give guidance on its management of higher yields to prevent even more outflows from emerging markets.
Oil prices fell, with both Brent and WTI struggling to keep weekly developments in positive territory after rising more than 10% in the past two weeks.
On Friday, US crude fell 0.53% to $ 65.67 a barrel, and Brent stood at $ 69.22, down 0.59% on the day.
Spot gold added 0.1% to $ 1,722.56 an ounce. Silver fell 0.79% to $ 25.87.
Bitcoin fell 1.43% for the last time to $ 56,947.33.
Report by Rodrigo Campos; additional reports by Shashank Nayar and Medha Singh in Bengaluru, John McCrank and Gertrude Chavez-Dreyfuss in New York and Shadia Nasralla in London Nick Zieminski Edition