associate sponsors

Havells
HDFC

Global stocks recover slightly from trade fight damage

Global stocks recover slightly from trade fight damage

By Laila Kearney

NEW YORK (Reuters) - General Electric Co and U.S. technology shares rose on Tuesday, helping global stock markets regain ground a day after a mounting trade fight between the United States and other top world economies chased investors into safe-haven assets.

GE jumped 7.6 percent, the biggest percentage gainer on Wall Street's S&P 500 index, after the company said it would spin off its healthcare business and divest its stake in oil-services company Baker Hughes .

Tech stocks rebounded from a sharp selloff on Monday, after U.S. government officials said plans were in the works to block firms with at least 25 percent Chinese ownership from buying U.S. companies with "industrially significant technology."

The Dow Jones Industrial Average <.DJI> rose 18.5 points, or 0.08 percent, to 24,271.3, the S&P 500 <.SPX> gained 2.99 points, or 0.11 percent, to 2,720.06 and the Nasdaq Composite <.IXIC> added 14.48 points, or 0.19 percent, to 7,546.48.

Europe's main stock exchanges also got a reprieve. A 0.3 percent rise on the FTSE in London <.FTSE> and 0.03 percent gain in Paris <.FCHI> were a welcome sight after Asia had extended a sell-off that has wiped $1.5 trillion off world stocks.

Despite the modest gains, investors remained wary.

“There is still generally a focus on trade and a bit of uncertainty over what we are going to hear from the Trump administration this week regarding potential investment restrictions,” said Brian Daingerfield, macro strategist at RBS Securities in Stamford, Connecticut.

Escalating trade tensions between the United States and China, as well as Washington and Europe, led two benchmark Wall Street indexes on Monday to suffer their worst losses in more than two months and launched China into bear market territory, with its major stock indexes down 20 percent decline from January peaks.

After seeing a surge in buying on Monday, U.S. Treasury yields held at lower levels on lingering fears that trade tensions could hurt economic growth, though safe-haven buying was capped on anticipation of more interest rate hikes from the Federal Reserve. [

The tense atmosphere knocked down most industrial metal prices amid worries about the global economic fallout of the trade conflict between the U.S. and China, which could hamper growth and metals demand.

Copper and aluminum were at or near their lowest since April while zinc plunged to its weakest since August last year.

In currencies, dollar index <.DXY> rose 0.29 percent, with the euro down 0.32 percent to $1.1664.

The Japanese yen weakened 0.12 percent versus the greenback at 109.92 per dollar, while Sterling was last trading at $1.3244, down 0.23 percent on the day.

The Turkish lira firmed against the dollar in volatile trade amid uncertainty over economic policy under a new government due to be formed following President Tayyip Erdogan's victory in Sunday's election.

In oil, prices rose on production losses in Canada, Libya and from the Neutral Zone between Saudi Arabia and Kuwait, but they remained under pressure from greater supply from others in OPEC and the escalating trade disputes.

U.S. crude rose 0.26 percent to $68.26 per barrel and Brent was last at $74.19, down 0.48 percent on the day. [O/R].

(Additional reporting by Marc Jones, Peter Hobson and Christopher Johnson in London, Behiye Selin Taner in Istanbul and Karen Brettell in New York.; Editing by David Gregorio and Larry King)

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


Updated Date: Jun 27, 2018 02:05 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See