US stocks fall on yield curve inversion

US stocks recovered last week as Trade Representative Lighthizer and Treasury Secretary Mnuchin resumed trade talks in Beijing. The S&P 500 rebounded 1.2% as yield curve inversion persisted while the ICE US dollar index gained 0.7%.

Nikkei and Hang Seng turned lower while remaining four out of six major global stock indexes recovered last week’s losses. Dow registered the sharpest recovery: it gained 1.5%. Four out of six major currencies reversed previous week’s dynamics against the US dollar, while the range of fluctuations was essential unchanged. The Pound was the leader in terms of percentage change: it slumped 1.4% against the US dollar as British parliament rejected the Brexit deal third time last week, raising the risk of a no-deal Brexit.

This week the Reserve Bank of Australia meets on Tuesday, analysts expect it to hold policy steady at a time of falling growth forecasts. Chinese Vice Premier Liu will arrive in Washington on Wednesday to continue trade negotiations, which Treasury Secretary Mnuchin called “constructive” in his tweet. And on Friday US Bureau of Labor Statistics is expected to report nonfarm payrolls rose 175,000 in March.