Stock Rally Eases; Dollar, Treasury Yields Fall: Markets Wrap

The equities rally that pushed stocks to records around the globe eased on Wednesday as some investors cautioned that gains had gone too far. The dollar snapped a two-day advance as Treasury yields declined.

The Stoxx Europe 600 gauge headed for the first drop in six days after U.S. benchmarks and the MSCI All-Country World Index closed at all-time highs a day earlier. Miners led the decline as prices of most industrial metals retreated, dragging the Bloomberg Commodity Index lower for a second day. West Texas Intermediate crude held above $48 a barrel as OPEC and its allies discuss an extension of output curbs. The pound extended its advance triggered by a bigger-than-forecast jump in inflation before Thursday’s central bank policy meeting.

Record stock prices are provoking concern in some corners of the market. The number of investors seeking protection from a possible plunge has surged and Leon Cooperman, the billionaire founder of hedge fund Omega Advisors, says a correction could start “very soon.”

In terms of data, U.S. wholesale and consumer-price numbers today and tomorrow could impact the timing of the next Federal Reserve interest-rate hike.