World stock markets and U.S. dollar retreat before key Trump speech | Reuters
By Sinead Carew | NEW YORK NEW YORK World stock markets and the U.S. dollar fell on Monday while U.S. Treasury yields rose amid investor caution ahead of a key speech by U.S.
By Sinead Carew
| NEW YORK
NEW YORK World stock markets and the U.S. dollar fell on Monday while U.S. Treasury yields rose amid investor caution ahead of a key speech by U.S. President Donald Trump.The dollar fell ahead of Trump's State of the Union address, during which he is expected to unveil details on pro-growth policies including infrastructure spending. "There is setting up for what people expect might be at least a focus on things like fiscal stimulus and infrastructure spending of some kind, that might actually boost risk and cause yields to rise," said Aaron Kohli, an interest rate strategist at BMO Capital Markets in New York.U.S. 10-year Treasury notes were last down 7/32 in price to yield 2.342 percent, from a yield of 2.317 percent late Friday. Two-year notes US2YT=RR were last down 1/32 in price to yield 1.169 percent, from a yield of 1.145 percent late Friday.The dollar .DXY was down 0.3 percent against a basket of major currencies after Trump said Monday that tax reform details would not be revealed until after the administration's proposal on healthcare.Investors had hoped for "more clarity around tax reform sooner rather than later" said Bipan Rai, senior macroeconomic strategist at CIBC Capital Markets in Toronto.
At 11:25 a.m. ET, the Dow Jones Industrial Average .DJI was down 5.62 points, or 0.03 percent, at 20,816.14, the S&P 500 .SPX shed 0.2 points, or 0.01 percent, to 2,367.14, while the Nasdaq Composite .IXIC added 1.63 points, or 0.03 percent, to 5,846.93.Europe's benchmark index of leading 300 shares .FTEU3 fell 0.1 percent. MSCI's benchmark world stock index slipped 0.03 percent .MIWD00000PUS after it hit a record high Thursday.
A proposed 29 billion euro merger between the London Stock Exchange (LSE.L) and Deutsche Boerse (DB1Gn.DE) to create Europe's biggest stock exchange looked dead in the water due to an inability to meet European antitrust demands. Shares in both companies fell. The London Stock Exchange fell as much as 3 percent while Deutsche Boerse fell as much as 4 percent."The regulatory hurdles were always a risk, and with Brexit, there are additional hurdles to clear that seem close to insurmountable now," said Neil Wilson, senior market analyst at ETX Capital.MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.24 percent, while Japan's Nikkei fell .N225 0.9 percent for its lowest close since Feb. 9 on concerns that a stronger yen would crimp corporate earnings.
The Dow Jones Industrial Average scaled its 11th consecutive record high on Friday, the longest such run since 1987, leading some to suggest it could be prone for a correction. In Europe, the focus was on France, where the latest polls showed that centrist Emmanuel Macron would score a more convincing victory over far-right and anti-euro Marine Le Pen in the presidential election's runoff vote.France's 10-year bond yield fell to a one-month low of 0.88 percent FR10YT=TWEBIn commodities, Brent crude LCOc1 was up 0.3 percent at $56.14 per barrel while U.S. West Texas Intermediate CLc1 was up 0.4 percent at $54.20 per barrel as a global supply glut appeared to ease. [O/R] (Additional Reporting by Jamie McGeever and Dhara Ranasinghe; Editing by Bernadette Baum)
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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.