US Stocks Drop After Six Day Winning Streak – Europe Market Wrap

A six-day winning streak that propelled the S&P 500 to the brink of a bull market is set to stall as investors bet that US stocks will lag the rest of the world.

S&P 500 contracts retreated 0.3%. By contrast, equity gauges in Europe and Asia advanced. The dollar was little changed. Gold edged higher while Bitcoin dropped 0.3%. Treasuries erased early gains, with the 10- year yield advancing one basis point to 4.46%.

Japanese notes tumbled after a government bond auction received the lowest demand since 2012, pointing to increasing concerns about investor support as the Bank of Japan dials back its huge debt holdings.
Some Wall Street strategists are betting European stocks will enjoy their best performance relative to the US in at least two decades as the region’s economic outlook improves. While US stocks have rallied in recent weeks, two Federal Officials warned on Monday that they would adopt a wait-and-see approach before lowering interest rates.

US President Donald Trump plans to go to the Capitol later on Tuesday to urge fractious House Republicans to overcome divisions and unite behind his signature tax-cut legislation. Moody’s Ratings stripped the US government of its top credit rating last week, citing a ballooning budget deficit it said showed little sign of narrowing.