NEW YORK (Reuters) - The dollar recovered from early weakness but a gauge of world equity performance edged lower on Thursday as concerns about global growth offset investor optimism over a surge in U.S. retail sales last month and strong Walmart earnings.
Gold prices, which have climbed almost 20% since late May on uncertainty driven by the U.S.-Sino trade spat and global growth concerns, rose after China threatened to retaliate against the latest U.S. tariffs, renewing investor unease about the row.
China called on the United States to meet it halfway on a potential trade deal as U.S. President Donald Trump said any pact would have to be on America’s terms.
The yield on 30-year U.S. government debt fell to a record low below 2% and benchmark 10-year Treasury notes dropped to a three-year trough, beaten down by the U.S.-Chinese trade tensions and economic growth concerns.
Euro zone government bond yields went further into negative territory, reflecting fear of an impending global recession after the U.S. yield curve remained inverted for a second day. The inversion is a classic sign of recession.
But Walmart Inc (WMT.N) reported strong second-quarter results and raised its earnings expectations for the year, while U.S. retail sales increased 0.7% last month after gaining 0.3% in June, the Commerce Department said.
Economists polled by Reuters had forecast retail sales would rise 0.3% in July. Walmart shares closed up 6.1% at $112.69.
Graphic: U.S. yield curve inversion Aug. 14 2019 - here
Graphic: Yield curves flattening - here
Graphic: Global assets in 2019 - here
