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Sentiment Shift: Stocks Lower Gold Higher

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WORLD HEADLINES – Officials reviewing China’s foreign-exchange holdings have recommended slowing or halting purchases of U.S. Treasuries, sending U.S. stock futures and the U.S. dollar lower while Treasury yields climbed with gold futures.

STOCKS – The Stoxx Europe 600 Index dropped and futures trading pointed to a similar move in U.S. equities when they open.

BONDS – Yields on 10-year Treasuries extended an advance to the highest level in about 10 months as Chinese officials were said to recommend slowing or halting purchases.

COMMODITIES – Gold gained 0.9 percent to $1,325.08 an ounce, the highest in almost four months on the largest rise in more than a week.

CURRENCIES – The Bloomberg Dollar Spot Index sank 0.5 percent to the lowest in almost 16 weeks on the biggest dip in four weeks.

ECONOMIC DATA – US Import Prices m/m due at 8:30, Crude Oil Inventories at 10:30, 10-y Bond Auction at 13:01, AUD Retail Sales m/m at 19:30 ET.

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