WASHINGTON: The dollar weakened, while Treasuries advanced after data showed U.S. economic growth cooled last quarter, giving investors little reason to add to reflation trades that have set the tone on markets since Donald Trump’s election. American equities were little changed near all-time highs amid earnings. The S&P 500 Index finished 0.2 percent from its record set Wednesday. Microsoft Corp. and Intel Corp. advanced, while Starbucks Corp. slumped after reporting results.
The greenback capped a fifth weekly slide after gross domestic product rose at a slower pace than forecast. The yen weakened as Japan’s central bank stepped in to buy debt. Ten-year Treasury yields fell below 2.50 percent. The Mexican peso strengthened even as souring relations with the U.S. pushed the countries closer to a trade war. Gold headed for its longest slump in three months. While the GDP report gave investors little reason to add to investments in the dollar and American equities, the strong job market and optimism among consumers and companies for the administration’s policies are likely to keep growth humming along in 2017. Markets have largely ignored the implications of growing tensions between the U.S. and Mexico even as one of the world’s largest bilateral trade agreements comes under fire.
