World stocks slip on uncertain outlook; bonds, yen gain | Reuters

By Richard Leong | NEW YORK NEW YORK World stock prices softened on Tuesday on concerns about the political outlook in Europe and U.S. economic growth, and nervous investors piled into yen and low-risk U.S.

Reuters May 30, 2017 21:49:45 IST
World stocks slip on uncertain outlook; bonds, yen gain
| Reuters

World stocks slip on uncertain outlook bonds yen gain
 Reuters

By Richard Leong
| NEW YORK

NEW YORK World stock prices softened on Tuesday on concerns about the political outlook in Europe and U.S. economic growth, and nervous investors piled into yen and low-risk U.S. and German government bonds.Oil prices declined on worries about global oversupply despite OPEC's pact last week to extend its crude output cut until the first quarter of 2018.Gold XAU rose to a one-month high of $1,270 an ounce on safe-haven demand before it ran out of steam."There have been some softness in U.S. economic data, and there are some less market-friendly policies in the U.S. on the margin," said Stephen Wood, chief market strategist with Russell Investments in New York.The MSCI world equity index .MIWD00000PUS, which tracks shares in 45 nations, fell 0.45 points, or 0.1 percent, to 463.84.On Wall Street, the Dow Jones Industrial Average .DJI fell 34.01 points, or 0.16 percent, to 21,046.27, the S&P 500 .SPX lost 2.89 points, or 0.12 percent, to 2,412.93 and the Nasdaq Composite .IXIC dropped 2.76 points, or 0.04 percent, to 6,207.44.

Recent U.S. economic reports have supported a growing view that the world's biggest economy is not recovering from an anemic first quarter as vigorously as some traders had thought.Data released on Tuesday showed U.S. consumer confidence fell in May and a gauge of core U.S. inflation retreated on a year-over-year basis.The lack of progress on tax cuts and other stimulus measures from Washington has also weighed on the outlook for company profits and broader economic activity, analysts said.

However, most Federal Reserve policymakers have not backed away from their expectations of two more rate increases by the end of 2017 as they see the U.S. economy near full employment and are confident inflation would reach its 2-percent goal.In Europe, elections in Italy may now come as early as September, after the 5-Star Movement became the fourth big party to back a switch to a proportional electoral system.Greece's debt problems also continued to simmer after it failed to reach a deal on its next installment of its bailout program earlier this month.

Europe's broad FTSEurofirst 300 index .FTEU3 dropped 0.20 percent at 1,533.88.With jitters about the United States and Europe, the yen strengthened against the dollar and euro. It was up 0.2 percent at 111.00 yen per dollar JPY=, and up 0.1 percent at 124.09 yen per euro EURJPY=.Safety bids lowered 10-year U.S. Treasury yield US10YT=RR to 2.229 percent and pinned 10-year German yield DE10YT=RR at 0.302 percent.In commodities, Brent crude LCOc1 was last down $0.76, or 1.45 percent, at $51.53 a barrel. U.S. crude CLc1 was last down $0.51, or 1.02 percent, at $49.29 per barrel.Spot gold prices XAU= were last down $3.84 or 0.30 percent, to $1,262.76 an ounce. (Reporting by Marc Jones, Patrick Graham in London and Nithin Thomas Prasad in Bengaluru; Editing by Richard Lough and Nick Zieminski)

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

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook
Business

Global Markets: Stocks ascend to record on economic recovery, vaccine outlook

By Chuck Mikolajczak NEW YORK (Reuters) - A gauge of global stocks hit a record and oil prices jumped on Monday as the newest positive data for a potential COVID-19 vaccine and signs of economic recovery in Asia boosted sentiment. U.S. stocks advanced, with the Dow Industrials setting a record as it neared the 30,000 mark for the first time, after pharma company Moderna said its prospective vaccine was 94.5% effective in preventing the illness, which has crushed economies across the globe

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus
Business

Airbnb IPO filing shows third-quarter earnings beating virus with cost cuts, new focus

By Anirban Sen and Joshua Franklin (Reuters) - Airbnb Inc's initial public offering (IPO) registration showed on Monday that the home rental startup turned a profit in the third quarter despite the COVID-19 pandemic, as it gears up for one of the most anticipated stock market debuts in recent years. The filing, published ahead of Airbnb's anticipated stock market debut in December, showed a dramatic recovery in its fortunes, after the coronavirus outbreak dragged down its core home rental business during the first half of the year. The slump forced it to lay off 25% of its workforce in May, suspend marketing activities for the year and seek $2 billion (£1.5 billion) emergency funding from investors, including Silver Lake and Sixth Street Partners, at a valuation of $18 billion

Biden says U.S., allies need to set global trade rules to counter China's influence
Business

Biden says U.S., allies need to set global trade rules to counter China's influence

By David Lawder WASHINGTON (Reuters) - U.S. President-elect Joe Biden said on Monday the United States needed to negotiate with allies to set global trading rules to counter China's growing influence but declined to say whether he would join a new China-backed Asian trade pact signed on Sunday.