Equities edge higher as political concerns weigh on sentiment
By David Randall NEW YORK (Reuters) - Global equities treaded water and U.S. government bonds edged higher on Friday as investors weighed better-than-expected corporate earnings and increased M&A activity in Europe against political concerns ranging from the U.S. elections to Brexit.
By David Randall
NEW YORK (Reuters) - Global equities treaded water and U.S. government bonds edged higher on Friday as investors weighed better-than-expected corporate earnings and increased M&A activity in Europe against political concerns ranging from the U.S. elections to Brexit.
Growing fears over a messy no-deal Brexit dragged sterling to 5-1/2-month lows after the European Union told Britain it should urgently scrap a plan to break their divorce pact.
"Most of the risks faced by markets for the rest of the year are political, so around the U.S. election, the UK government's exit from the EU and U.S.-China tensions," said Francois Savary, chief investment officer at Swiss wealth manager Prime Partners.
"As people take a step back to assess these risks, we're in this consolidation, holding pattern, which was needed as markets aren't cheap at the moment."
MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.10% following modest gains in Europe and Asia. Japan's Nikkei <.N225> rose after Tokyo dropped its coronavirus alert by one notch from the highest level as COVID-19 cases trend down.
European indexes were bolstered after telecoms and cable group Altice Europe
On Wall Street, the Dow Jones Industrial Average <.DJI> rose 131.06 points, or 0.48%, to 27,665.64, the S&P 500 <.SPX> gained 1.78 points, or 0.05%, to 3,340.97 and the Nasdaq Composite <.IXIC> dropped 66.05 points, or 0.6%, to 10,853.55.
Shares of cloud services company Oracle Corp
The NYSE Fang+ index of big 10 tech companies <.NYFANG> lost 5.6% for the week in its biggest weekly decline since March.
Still, the index has more than doubled from its March trough, and investors have gathered that high valuations are justifiable in light of near-zero interest rates in much of the developed world and the massive liquidity the world's central banks have created.
Many investors have said the sell-off was a healthy correction.
Yet, with the world's stocks still trading near the most expensive levels relative to the profit outlook since the 2000 tech bubble, some analysts called for caution.
"Global shares had rallied on expectations of economic recovery from lockdowns. But as the autumn begins (in the northern hemisphere), people wonder if coronavirus infections could worsen," said Kozo Koide, chief economist at Asset Management One.
The European Union is ramping up preparations for a tumultuous end to the four-year Brexit saga after Britain explicitly said this week it plans to break international law by breaching parts of the Withdrawal Agreement treaty signed in January.
The dollar index <=USD> fell 0.104%, with the euro
Benchmark 10-year U.S. Treasury notes
(Reporting by David Randall; Editing by Nick Zieminski, Tom Brown and Dan Grebler)
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.