US stocks fall after mixed reports, with utilities skidding

And Britain’s central bank just cut rates in response to fears over poor economic performance thanks to the U.K.’s impending exit from the European Union. The most recent data, released today, shows US consumer prices unchanged in July, with an 0.8% year-on-year increase. The dollar’s index against a basket of six major currencies plunged to 94.426 its lowest level since late June before paring some of losses to stand at 94.844, still down 0.9 percent on the week. Groundbreaking on multi-family housing projects with five units or more jumped to the highest level since September 2015.

USA consumer price index data, due for release on Tuesday, is also in focus as if it comes in lower than expected, it is also bound to boost expectations for lower United States interest rates for longer. The odds of a move this year have risen to 51 percent, from 36 percent at the end of July, futures show.

The euro was at $1.1183 from $1.1169 previously. If the greenback extends slide, it may challenge support around the 0.93 area. The yen hit a low of 99.53 versus the dollar earlier.

TheNasdaq (^IXIC) fell 19 points, or 0.37 percent, to 5,242.

“Early indications of third-quarter GDP growth suggest a rebound”, he said to the Rotary Club of Knoxville, Tenn.

While Williams has previously said that policy makers should explore their alternatives for dealing with a low-rate world and has put forth the idea of a higher inflation target, his essay takes a more forceful tack, arguing that “we are seeing the future now” and “reviewing the key aspects of inflation targeting is certainly necessary”.

The Fed releases minutes from its July meeting on Wednesday, while the next meeting of the policy-setting Federal Open Market Committee is in Washington on September 20-21.

That weighed on stocks, which respond negatively to monetary policy tightening, particularly as US data appeared unsupportive of a rate rise.

But the dollar recouped some of its losses after Dudley’s comments.

In an interview on FOX Business Network’s (FBN) Mornings with Maria (weekdays, 6a-9a/ET), Senior Washington Correspondent Peter Barnes spoke with New York Federal Reserve President William Dudley about interest rates.

Sterling edged up 0.1 percent to $1.2931. More houses were under construction last month than at any time since the beginning of 2008, indicating homebuilders were making headway in filling orders.

Malaysia’s 10-year bond yield climbed four basis points to 3.53 percent, according to prices from Bursa Malaysia. Germany’s DAX fell 0.6 percent. In response, USA stock prices slid on Tuesday while interest rate futures markets priced in about an 18 percent chance of a September move by the Fed, up from 9.0 percent on Monday, while odds of a move by December rose to about even. Dow and S&P 500 futures were both down 0.1 percent.

The probability of a rate hike in September now stands at 24% according to Fed Funds Futures and chances are it will fall further in the next few days.

Investors believe Fed officials will want to see signs of inflationary pressures before they risk raising official interest rates.

· In the United States on Tuesday there are three “top shelf” indicators – industrial production, housing starts and consumer prices.

Global benchmark Brent Crude was up 0.10 per cent to $48.40. It rose more after settlement, reaching $49.34, its highest since July 7.

OIL: Benchmark U.S. crude added 6 cents at $45.80 per barrel in NY.

The CBOE Volatility Index (VIX) (^VIX), widely considered the best gauge of fear in the market, traded higher, near 12.5. Gold gained $9.40 to $1,456.90 an ounce.