Global Markets: Shares, dollar dip as limp results, impeachment inquiry offset trade hopes

By Stephen Culp LONDON (Reuters) - Shares in Europe dipped, Wall Street backed off record highs and the U.S. dollar was poised to extend a three-day losing streak as underwhelming earnings and uncertainty over an ongoing U.S. impeachment inquiry overshadowed hopes for a U.S.-China trade deal

Reuters November 20, 2019 00:07:06 IST
Global Markets: Shares, dollar dip as limp results, impeachment inquiry offset trade hopes

Global Markets Shares dollar dip as limp results impeachment inquiry offset trade hopes

By Stephen Culp

LONDON (Reuters) - Shares in Europe dipped, Wall Street backed off record highs and the U.S. dollar was poised to extend a three-day losing streak as underwhelming earnings and uncertainty over an ongoing U.S. impeachment inquiry overshadowed hopes for a U.S.-China trade deal.

The U.S. benchmark S&P 500 index was nominally lower and Home Depot Inc pulled the blue-chip Dow Jones Industrial index firmly into the red after the home improvement retailer cut its 2019 sales forecast.

Talks continued between the world's two largest economies on an interim deal toward resolving their 18-month, market-rattling trade dispute that has damaged supply chains and upset global markets, even as Washington is set to impose a new round of tariffs on Chinese goods on Dec. 15.

But as the impeachment hearings in the U.S. House of Representatives gained momentum, the end game of the U.S.-China trade war grew increasingly foggy. The inquiry focuses on a July 25 phone call in which President Donald Trump asked Ukrainian President Volodymyr Zelenskiy to carry out two investigations that would benefit him politically.

"There's a lot of pontification that (President Trump) needs a trade deal," said Robert Pavlik, chief investment strategist, senior portfolio manager at SlateStone Wealth LLC in New York. "And given the impeachment that's going on phase 1 is likely but he can't give up too much or he'll lose face."

"The impeachment inquiry is being paid special attention to by the Chinese," Pavlik added. "It puts the president in a less powerful position. He's somewhat disarmed and they know he has to reach some kind of agreement to get re-elected."

The Dow Jones Industrial Average fell 79.52 points, or 0.28%, to 27,956.7, the S&P 500 lost 2.73 points, or 0.09%, to 3,119.3 and the Nasdaq Composite added 12.52 points, or 0.15%, to 8,562.46.

Hopes of a trade truce earlier in the day drove European stocks to a four-year high and world stocks to their highest in nearly two years, but those gains were pared later in the session.

The pan-European STOXX 600 index lost 0.06% and MSCI's gauge of stocks across the globe gained 0.01%.

Emerging market stocks rose 0.42%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.64% higher, while Japan's Nikkei lost 0.53%.

Long-dated U.S. Treasury yields slipped for the seventh straight day as risk appetite weakened.

Benchmark 10-year notes last rose 4/32 in price to yield 1.7946%, from 1.808% late on Monday.

The 30-year bond last rose 16/32 in price to yield 2.2704%, from 2.293% late on Monday.

The dollar was nominally lower against a basket of major world currencies, giving up early gains. The dollar index, tracking it against six major peers, fell 0.02%, with the euro up 0.11% to $1.1082.

The Japanese yen strengthened 0.12% versus the greenback at 108.56 per dollar, while Sterling was last trading at $1.2938, down 0.11% on the day.

The protracted trade negotiations continue to weigh on crude prices, with Brent crude oil futures dipping below $62 per barrel.

U.S. crude fell 1.93% to $55.95 per barrel and Brent was last at $61.51, down 1.49% on the day.

Spot gold rose 0.08% to $1,470.56 an ounce.

Copper rose 0.53% to $5,861.00 a tonne.

Three-month aluminum on the London Metal Exchange lost 0.46% to $1,730.00 a tonne.

(Reporting by Stephen Culp; additional reporting by Tom Wilson in London; Editing by Bernadette Baum)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Intel seeks $10 billion in subsidies for European chip plant
News & Analysis

Intel seeks $10 billion in subsidies for European chip plant

By Douglas Busvine BRUSSELS/BERLIN (Reuters) -Intel wants 8 billion euros ($9.7 billion) in public subsidies towards building a semiconductor factory in Europe, its CEO was cited as saying on Friday, as the region seeks to reduce its reliance on imports amid a shortage of supplies. The pitch is the first time Pat Gelsinger has publicly put a figure on how much state aid he would want, as Intel pursues a multibillion-dollar drive to take on Asian rivals in contract manufacturing. "What we're asking from both the U.S

China's Ximalaya, Qiniu file for U.S. IPOs
News & Analysis

China's Ximalaya, Qiniu file for U.S. IPOs

(Reuters) -Ximalaya, backed by China's Tencent Holdings, filed for an initial public offering (IPO) in the United States on Friday, cashing in on growing demand as more people tune in to podcasts while staying at home during the pandemic. China's Qiniu Ltd, a cloud-based platform-as-a-service provider backed by Alibaba Group Holding Ltd, also filed paperwork for a U.S. IPO

Donerail pushes gaming headset maker Turtle Beach to explore a sale - sources
News & Analysis

Donerail pushes gaming headset maker Turtle Beach to explore a sale - sources

By Greg Roumeliotis (Reuters) - Donerail Group, an investment firm led by former activist hedge fund Starboard Value LP executive Will Wyatt, has amassed a stake in Turtle Beach Corp and is pushing the maker of gaming headsets to explore a sale, people familiar with the matter said on Friday. The move represents a bet that Turtle Beach could attract acquisition interest from peers such as Corsair Gaming Inc and GN Store Nord A/S, as the video game market continues to benefit from people looking for entertainment options at home during the COVID-19 pandemic