* The Dow edges higher
* Benchmark 10-year yields rise
* Yield curve remains inverted
* Dollar gains
* Oil prices decline 3%
* Safe-haven gold drops
NEW YORK, Aug 16 (Reuters) - Global equity markets were flat
while U.S. Treasury yields rose on Tuesday, as recession worries
persisted amid concern the Federal Reserve will continue its
steep interest rate hikes despite nascent signs of a slowdown in
The yield curve between two- and 10-year Treasury notes
, viewed as an indicator of impending recession,
remained inverted at minus 40 basis points on Tuesday.
"It seems that the bond market doesn't quite reflect the
inflation happening in the economy," said George Young, a
portfolio manager at Villere & Company in New Orleans.
"The weird thing is that in the last couple of weeks bond
yields have gone up and stayed up so there's kind of a
disconnect. There's kind of a question maybe inflation isn't
that bad and we may actually be going into a recession. Market
participants are all over the place," he added.
MSCI's gauge of stocks in 50 countries across the globe
shed 0.07%. Overnight in Asia, MSCI's broadest
index of Asia-Pacific shares outside Japan
closed 0.07% lower, while Japan's Nikkei lost 0.01%.
U.S. Treasury yields edged higher as encouraging data from
U.S. retail giants suggested the Fed has room to further raise
rates to cool inflation. Benchmark 10-year Treasury yields
were at 2.8222% from 2.791% on Monday
On Wall Street, the Dow reversed earlier losses and was
trading higher, with stocks in consumer discretionary, consumer
staples, and healthcare leading the rebound. Benchmark S&P 500
was flat in afternoon trading.
The Dow Jones Industrial Average rose 0.54% to
34,094.94, the S&P 500 lost 0.04% to 4,295.4 and the
Nasdaq Composite dropped 0.51% to 13,060.90.
Oil prices dropped more than 3% in volatile trading as
recession worries raised uncertainty over global crude demand,
even as markets awaited clarity on talks to revive a deal that
could allow more Iranian oil exports.
Brent crude futures fell 3.47% to $91.80 a barrel,
after hitting a session high of $95.95. West Texas Intermediate
crude (WTI) decreased 3.69% to $86.11 a barrel, after
rising to $90.65.
The dollar gained as the greenback benefited from
expectations the U.S. economy would be stronger than peers in
the event of a slowdown in growth. The dollar index rose
0.038%, with the euro up 0.04% to $1.0164.
Safe-haven gold fell for a second straight session on
Tuesday as a firmer dollar made the greenback-denominated metal
more expensive. Spot gold dropped 0.1% to $1,776.89 an
ounce, while U.S. gold futures fell 0.36% to $1,774.90 an
(Reporting by Chibuike Oguh; Editing by Sandra Maler and Alex