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

Reuters November 20, 2019 00:07:29 IST
Shares, dollar dip as limp results, impeachment inquiry offset trade hopes

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 towards 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 <.DJI> fell 79.52 points, or 0.28%, to 27,956.7, the S&P 500 <.SPX> lost 2.73 points, or 0.09%, to 3,119.3 and the Nasdaq Composite <.IXIC> 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 <.STOXX> lost 0.06% and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.01%.

Emerging market stocks rose 0.42%. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> closed 0.64% higher, while Japan's Nikkei <.N225> 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 <.DXY>, 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 aluminium 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

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

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

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

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.