Dollar pulls back after Trump comments, world stocks dip
By Lewis Krauskopf NEW YORK (Reuters) - The U.S. dollar pulled back from year-high levels on Thursday against a basket of major currencies, while U.S. Treasury yields briefly fell to session lows after U.S.
By Lewis Krauskopf
NEW YORK (Reuters) - The U.S. dollar pulled back from year-high levels on Thursday against a basket of major currencies, while U.S. Treasury yields briefly fell to session lows after U.S. President Donald Trump expressed concerns about interest rate hikes and the strong dollar.
Wall Street and a gauge of global stocks cut their daily declines following Trump's comments to CNBC television, in which he said the strong dollar "puts us at a disadvantage" and expressed dismay with the Federal Reserve's decision to hike interest rates.
"I’m not thrilled," he said in an interview, according to CNBC. "Because we go up and every time you go up they want to raise rates again. I don't really - I am not happy about it. But at the same time I’m letting them do what they feel is best."
Asset prices earlier responded to escalating global trade tensions and concerns about China's economy, including copper tumbling to a year low.
China took issue with U.S. comments blaming China's president for blocking a trade deal, while the European Union may retaliate if the United States imposes tariffs on EU cars.
Chinese policymakers are pumping more liquidity into the financial system, and Beijing looks set to further loosen monetary conditions to mitigate threats to growth from a heated Sino-U.S. trade war. China's yuan bounced back against the dollar after Trump's comments, after it earlier fell to a one-year low.
On Wall Street, the Dow Jones Industrial Average <.DJI> fell 86.61 points, or 0.34 percent, to 25,112.68, the S&P 500 <.SPX> lost 5.07 points, or 0.18 percent, to 2,810.55 and the Nasdaq Composite <.IXIC> dropped 12.90 points, or 0.16 percent, to 7,841.55.
In another heavy day of corporate results, declines in eBay
MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.36 percent.
The pan-European FTSEurofirst 300 index <.FTEU3> lost 0.20 percent, as shares of France's Publicis
Markets also digested data showing the number of Americans filing for unemployment benefits unexpectedly fell last week, hitting its lowest in more than 48-1/2 years, as the labour market continued to strengthen.
The dollar index <.DXY> rose 0.01 percent to 95.09, after rising as high as 95.652, with the euro
Benchmark 10-year notes
Copper prices plunged to one-year lows as fund selling accelerated due to worries about demand from the trade tussle between the United States and top consumer China.
Other metals such as zinc
Global benchmark Brent crude fell as concerns about mounting supply returned after a brief rally on comments that Saudi Arabia's exports would fall in August.
(Additional reporting by Marc Jones in London; Editing by Bernadette Baum and Susan Thomas)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.