Wall St. dips on latest U.S.-China comments, European shares rally

By Laila Kearney New York (Reuters) - Global stock markets tipped downward on Tuesday as Wall Street investors locked in recent gains while taking a cautious view of fresh U.S.-China comments even as European shares approached four-month peaks and China moved to further open up its economy. U.S.

Reuters May 23, 2018 03:05:08 IST
Wall St. dips on latest U.S.-China comments, European shares rally

Wall St dips on latest USChina comments European shares rally

By Laila Kearney

New York (Reuters) - Global stock markets tipped downward on Tuesday as Wall Street investors locked in recent gains while taking a cautious view of fresh U.S.-China comments even as European shares approached four-month peaks and China moved to further open up its economy.

U.S. President Donald Trump on Tuesday said he was not pleased with recent trade discussions with China, reversing optimism about a warming relationship between the world's two largest economies that led to a strong rally the prior session.

The Dow Jones Industrial Average <.DJI> fell 177.3 points, or 0.71 percent, to 24,835.99, the S&P 500 <.SPX> lost 8.38 points, or 0.31 percent, to 2,724.63 and the Nasdaq Composite <.IXIC> dropped 15.58 points, or 0.21 percent, to 7,378.46.

Trump also said no deal had been made with ZTE Corp <000063.SZ>, as U.S. lawmakers from both political parties worked to block him from easing penalties on the Chinese telecoms gear maker.

The United States' change of tone on China chilled Wall Street investor sentiment, said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.

"It makes people less enthusiastic," O'Rourke said. "Investors are at a point where they're taking everything that is said tentatively, with a grain of salt."

Trump's remarks followed Beijing's announcement that it would steeply cut import tariffs for automobiles and car parts, leading to a rally in shares of U.S. auto makers Ford Motor Co , General Motors Co , and U.S.-listed shares of Fiat . [.N]

Europe's big carmakers Volkswagen , BMW , Daimler also rose on the news. [.EU]

Elsewhere, European shares were up as Italian government bond yields slipped from multi-month highs after six days of steep selling tied to the growing likelihood of a government comprised of the anti-establishment 5-Star Movement and the far-right League.

Analysts said the price falls of recent days might render the debt attractive again for some.

The pan-European FTSEurofirst 300 index <.FTEU3> rose 0.29 percent and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.01 percent.

Meanwhile, oil prices rose on mounting supply concerns tied to Venezuelan crude output and a possible cut in Iranian exports that could further curb global supply.

The concerns were exacerbated when Washington added sanctions against Venezuela following President Nicolas Maduro's disputed re-election over the weekend.

Brent crude futures rose 35 cents to settle at $79.57 a barrel, a 0.44 percent gain after recently topping the global benchmark of $80 for the first time since November 2014.

After six days of gains, the U.S. dollar retreated as Treasury yields dipped and investors sought incentives to buy after a 7 percent rally since mid-February.

The dollar's recent uptrend has been supported by generally upbeat U.S. economic data that has kept the Federal Reserve on track to raise interest rates at least two more times this year.

The dollar index <.DXY> fell 0.11 percent, with the euro down 0.09 percent to $1.1779.

Gold steadied as the dollar lost momentum, but risk appetite in the broader financial market cooled the metal's gains.

U.S. gold futures gained 0.03 percent to $1,291.30 an ounce.

(Additional reporting by Marc Jones, Alex Lawler, Gertrude Chavez-Dreyfuss, Maytaal Angel and Stephanie Kelly; Editing by Bernadette Baum and Lisa Shumaker)

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

Updated Date:

TAGS:

also read

Oil settles up after hitting 15-month highs on demand prospects
Business

Oil settles up after hitting 15-month highs on demand prospects

By Laura Sanicola NEW YORK (Reuters) - Oil prices settled higher on Tuesday, with Brent hitting above $71 and trading at its highest since March, on expectations for growing fuel demand during the summer driving season in the United States as OPEC+ agreed to boost output. Brent crude futures for August settled up 93 cents, or 1.3%, to $70.25 a barrel after hitting $71 earlier in the session - its highest intra-day price since March 8. U.S.

Wall St ends little changed; energy gains, health sags
Business

Wall St ends little changed; energy gains, health sags

By Lewis Krauskopf, Shashank Nayar and Medha Singh (Reuters) - Wall Street's main indexes ended little changed on Tuesday, with gains in energy and financial shares countering declines in healthcare, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. The S&P 500 financial sector hit a record high, while expected growth in fuel demand boosted oil prices and helped lift the energy sector

Zoom forecasts upbeat revenue on remote work, e-learning boost
Business

Zoom forecasts upbeat revenue on remote work, e-learning boost

(Reuters) - Zoom Video Communications Inc on Tuesday forecast better-than-expected revenue for the current quarter, after beating quarterly estimates, as the video-conferencing platform expects steady growth from remote work and online learning. Zoom became a household name during the pandemic as businesses and schools switched to its video conferencing platform for virtual classes, office meetings and social catch-ups