US stocks retreat further as ISM prices paid sends bonds lower-Dow Jones drops below 38,400

The reactions across the US markets following the better than forecast ISM service sector index have also been stoked by a greater than forecast in the prices paid component of that index. That has sent US bond markets lower and corresponding yields higher. That has lifted the USD/JPY, as jus noted in the previous update. It has also further dented the EUR/USD and GBP/USD, both of which have now hit fresh session lows following this data. The US stock markets do not seem to like it much either and this has seen the Dow Jones continue to underperform the most amongst the three major indexes. The Dow Jones has now fallen to below 38,400 following this report