Mar­kets down on geopo­lit­i­cal ten­sions

Malta Independent - - FINANCIAL -

On Thurs­day Euro­pean eq­ui­ties and U.S. stock fu­tures de­clined af­ter re­ports that North Korea is pre­par­ing to launch a mis­sile while the pound jumped as the Bank of Eng­land held in­ter­est rates but sig­naled the pos­si­bil­ity of stim­u­lus re­duc­tion.

The dol­lar erased gains and Trea­sury yields were lit­tle changed as geopo­lit­i­cal ten­sions mounted, blunt­ing the ef­fect of data that showed U.S. in­fla­tion ac­cel­er­ated. A drop in base met­als dragged down min­ing shares. The green­back snapped a three-day win­ning streak af­ter be­ing sup­ported by a slight in­crease in ex­pec­ta­tions of a U.S. in­ter­est-rate rise this year and President Don­ald Trump’s push for bi­par­ti­san sup­port on tax re­form.

Chi­nese retail sales, in­dus­trial pro­duc­tion and fixed-as­set in­vest­ment all slowed last month af­ter a lack­lus­ter July as ef­forts to rein in credit ex­pan­sion and re­duce ex­cess ca­pac­ity in the world’s sec­ond-largest econ­omy hit home. Still, re­newed hope for a U.S. tax over­haul was spurred by House Speaker Paul Ryan say­ing the plan is to have a new tax sys­tem func­tion­ing next year. Ster­ling ad­vanced as a ma­jor­ity of pol­icy mak­ers judged that some with­drawal of mone­tary stim­u­lus may be ap­pro­pri­ate if the econ­omy stayed on course.

The Stoxx Europe 600 In­dex slipped 0.1 per­cent. Fu­tures on the S&P 500 In­dex de­creased 0.2 per­cent. Ger­many’s DAX In­dex fell 0.3 per­cent, the first re­treat in more than a week. The U.K.’s FTSE 100 In­dex fell 0.9 per­cent to the low­est in more than two weeks.

The Topix in­dex fell 0.3 per­cent at the close in Tokyo. The Hang Seng In­dex in Hong Kong slipped 0.4 per­cent. Bench­marks in China also de­clined. The Ja­panese yen was lit­tle changed at 110.45 per dol­lar.

Gold rose 0.2 per­cent to $1,324.94 an ounce. West Texas In­ter­me­di­ate crude gained 1.1 per­cent to $49.84 a bar­rel, the high­est in more than five weeks. Cop­per fell 0.8 per­cent to $2.9565 a pound, the low­est in more than three weeks.

Newspapers in English

Newspapers from Malta

© PressReader. All rights reserved.