Stocks make it easy with Goldman Stocks; fall of the dollar against the yen

  • Stocks on Wall Street are mostly lower
  • China’s growth in 2022 is one of the worst in nearly 50 years
  • Investors focus on dlr/ien ahead of BOJ decision this week

NEW YORK, Jan 17 (Reuters) – Wall Street stocks were mostly lower on Tuesday after disappointing quarterly results from Goldman Sachs and other companies, while the dollar weakened against the Japanese yen amid expectations of a possible policy change by the Bank of Japan.

The global stock index was little changed.

The BOJ is expected to make a key policy decision on Wednesday after a two-day meeting.

The dollar was last down 0.2% against the Japanese yen at 128.25, with investors bracing for sharp moves when the BOJ ends its meeting.

“If the BOJ decides to just adjust its operations, we could see a rebound in the dollar/yen,” said Joe Perry, senior market analyst at and Citi Indices in New York.

In Treasuries, long-term US yields rose as investors awaited the outcome of the BOJ meeting and braced for a likely increase in corporate debt supply.

On Wall Street, where investors’ focus shifted to quarterly earnings reports, the Dow and S&P 500 were lower, with shares of Goldman Sachs Group ( GS.N ) down more than 6%.

Goldman reported a bigger-than-expected 69% drop in fourth-quarter profit. Results from JPMorgan & Chase ( JPM.N ) and others kicked off the fourth-quarter U.S. reporting period on Friday.

The Dow Jones Industrial Average (.DJI) fell 341.18 points, or 0.99%, to 33,961.43, the S&P 500 (.SPKS) lost 3.51 points, or 0.09%, to 3,995.58, and the Nasdaq Composite (.IX06) added a point, or. 0.05%, to 11,085.22.

The pan-European STOXX 600 index (.STOXX) rose 0.40%, and MSCI’s benchmark index of shares around the world (.MIVD00000PUS) gained 0.02%.

Also weighing on sentiment, Chinese data showed the world’s second-largest economy grew 2.9 percent in the fourth quarter of last year, beating expectations but underscoring the toll taken by Beijing’s strict “zero COVID” policy.

China’s 2022 growth of 3% was well below the official target of around 5.5%. Excluding the 2.2% expansion after COVID-19 first hit in 2020, it was the worst performance in nearly half a century.

The BOJ is under pressure to change its interest rate policy, after its attempt to buy itself some breathing room backfired.

Yields on Japan’s 10-year government bonds exceeded the BOJ’s policy ceiling for a third straight session on Tuesday, amid speculation that policymakers may adjust stimulus settings.

Benchmark US 10-year Treasury yields rose two basis points to 3.54%, and two-year Treasury yields fell three basis points to 4.21%.

In the energy market, US crude was recently up 0.54% at $80.29 a barrel and Brent was at $85.85, up 1.65% on the day.

The first cryptocurrency bitcoin saw a gain of about a quarter in January, jumping over 20% in the past week alone, setting the price for its best month since October 2021. The last time it was almost the same on that day.

Additional reporting by Gertrude Chavez-Dreyfus in New York, Tom Wilson in London and Kane Wu in Hong Kong; Editing: Gerry Doyle, Neil Fullick, Alec Richardson, Chizu Nomiyama and Andrea Ricci

Our Standards: Thomson Reuters Trust Principles.

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