Thursday , November 23 2017

Stocks slip, dollar declines following US vote; oil slides

epa05970801 A trader works on the floor of the New York Stock Exchange at the end of the trading day in New York, New York, USA, on 17 May 2017. Stocks were down today reportedly in reaction to uncertainty surrounding political news concerning US President Donald J. Trump and the White House.  EPA/JUSTIN LANE


Stocks fell with the dollar and Treasuries climbed as investors questioned the likelihood of Congress passing President Donald Trump’s fiscal agenda soon, particularly in light of a repudiation in Tuesday’s US elections. Oil slid for a second day.
The S&P 500 Index and Dow Jones Industrial Average were lower, dragged down by financial firms. European shares slipped following disappointing results from Credit Agricole SA. The euro strengthened and core government bond yields nudged lower. Sterling fell amid tensions in the UK government, where PM Theresa May is weighing whether to fire a cabinet member only seven days after her defense secretary quit in a harassment scandal.
In the US, the focus is on when, and whether, president’s tax plan will take shape. The Washington Post reported that Senate Republican leaders were considering holding cuts back by a year, while they are also said to be considering repealing deductions for state and local taxes. The prospect of lower corporate taxes has helped drive stocks to record levels this year.
“There needs to be more a lot more details coming out in this tax plan,” Sean Simko, head of fixed income portfolio management at SEI Investments Co., said.
Investors are also looking at geopolitics as Trump continues his tour of Asia with a central mission of rallying the world to stand up to North Korea. Calling out Russia and China by name, the president said that all responsible nations must join forces to deny Kim Jong Un’s regime of support. He’s also expected to discuss trade with his Chinese counterpart, Xi Jinping.
US consumer sentiment probably cooled in early November from a more than 13-year high; the University of Michigan’s report is out on Friday. OPEC releases its World Oil Outlook. Argentina’s central bank unexpectedly raised borrowing costs. Mexico, New Zealand and Malaysia are also holding monetary-policy meetings this week. The European Commission’s chief Brexit negotiator Michel Barnier and UK Brexit Secretary David Davis resume talks. Earnings season continues with announcements from Walt Disney Co., Adidas AG, and Siemens AG. European financial companies set to report include Allianz SE and Zurich Insurance Group AG. The S&P 500 was down 0.2 percent as of 9:41 am in New York. The Stoxx Europe 600 Index sank 0.3 percent. The MSCI Asia Pacific Index jumped 0.3 percent to the highest in about 10 years. The MSCI Emerging Market Index slipped less than 0.1 percent.
The Bloomberg Dollar Spot Index declined 0.2 percent. The euro increased 0.1 percent to $1.1599. The British pound decreased 0.6 percent to $1.3092. The Japanese yen rose 0.4 percent to 113.52 per dollar, the strongest in more than a week.
The yield on 10-year Treasuries dipped less than one basis point to to 2.3091 percent, the lowest in more than three weeks. Germany’s 10-year yield fell one basis point to 0.314 percent, the lowest in two months. Britain’s 10-year yield decreased three basis points to 1.197 percent, the lowest in eight weeks.

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epa02858721 Emirati investor follows the financial market by watching the screen board at the Dubai Financial Market in Gulf Emirate of Dubai, United Arab Emirates on 07 August 2011. According to media reports, stocks tumbled across the Middle East on 07 August, a day after the news of the historic US credit downgrading, Gulf countries stock markets have dropped on 07 August. The Dubai Financial Market Index opened trading down 4.5 percent before clawing back some ground to end the day 3.69 percent weaker at 1,484.31 points. Shares in property giant Emaar Properties shed 5.26 percent. Rating agency Standards & Poors announced on 05 August it was downgrading the United States' credit rating from Triple A to AA+. The announcement panicked international markets, while US authorities expressed criticism and said it was not justified.  EPA/ALI HAIDER

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