US stocks started the new year with a more than one&nbsp;percent decline on Wednesday, as weak data in Asia and Europe confirmed fears of a global economic slowdown while the US&nbsp;government shutdown dragged on.

All 11 major S&amp;P sectors were lower in early trading, with declines in the technology and healthcare indexes weighing the most on the market. All 30 of the Dow Industrial components were in the red.

China's factory activity contracted for the first time in 19 months in December, hit by the Sino-US&nbsp;trade war, with the weakness spilling over to other Asian economies. Euro zone manufacturing activity dropped for the fifth month and barely avoided contraction.

The grim readings come ahead of the closely watched US&nbsp;manufacturing survey on Thursday, payrolls data on Friday and the US&nbsp;earnings season later this month, which is expected to show corporate profit shrunk in the October-December quarter.

"Increasing evidence of China's economy weakening further has sent chills throughout global markets. This fear has been a depressing factor for the markets," Peter Cardillo, chief market economist at Spartan Capital Securities, said in a client note.

At 9:56 a.m. ET, the Dow Jones Industrial Average was down 259.33 points, or 1.11 per cent, at 23,068.13, the S&amp;P 500 was down 27.61 points, or 1.10 per cent, at 2,479.24 and the Nasdaq Composite was down 79.29 points, or 1.20 per cent, at 6,555.98.

The tech index slipped 1.15 percent, with Microsoft Corp and Apple Inc down nearly 2 percent. Amazon.com Inc and Netflix Inc fell over 1 percent to drag the consumer discretionary sector down by 0.90 percent.

Healthcare, 2018's best performing sector, dropped 1.61 per cent, while energy, last year's worst performing sector, fell 0.94 per cent as concerns about an economic slowdown also hit oil prices.

A low appetite for risk sparked demand for U.S. Treasuries, sending yields on 10-year debt to a 12-month low of 2.6470 per cent.

Meanwhile, the U.S. Congress is set to reconvene with no signs of a workable plan to end a 12-day-old partial shutdown and Trump not budging on his demand for $5 billion to fund a border wall. A Democrat plan to approve a two-part spending package does not include these funds.

Tesla Inc sank 8.6 per cent after the electric car maker delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the United States in response to the loss of a green tax credit.

Declining issues outnumbered advancers for a 4.22-to-1 ratio on the NYSE and a 2.43-to-1 ratio on the Nasdaq.

The S&amp;P index recorded no new 52-week highs and three new lows, while the Nasdaq recorded three new highs and 44 new lows.

US stocks started the new year with a more than one percent decline on Wednesday, as weak data in Asia and Europe confirmed fears of a global economic slowdown while the US government shutdown dragged on.

US stocks started the new year with a more than one percent decline on Wednesday, as weak data in Asia and Europe confirmed fears of a global economic slowdown while the US government shutdown dragged on. All 11 major S&P sectors were lower in early trading, with declines in the technology and healthcare indexes weighing the most on the market. All 30 of the Dow Industrial components were in the red. China's factory activity contracted for the first time in 19 months in December, hit by the Sino-US trade war, with the weakness spilling over to other Asian economies. Euro zone manufacturing activity dropped for the fifth month and barely avoided contraction. The grim readings come ahead of the closely watched US manufacturing survey on Thursday, payrolls data on Friday and the US earnings season later this month, which is expected to show corporate profit shrunk in the October-December quarter. "Increasing evidence of China's economy weakening further has sent chills throughout global markets. This fear has been a depressing factor for the markets," Peter Cardillo, chief market economist at Spartan Capital Securities, said in a client note. At 9:56 a.m. ET, the Dow Jones Industrial Average was down 259.33 points, or 1.11 per cent, at 23,068.13, the S&P 500 was down 27.61 points, or 1.10 per cent, at 2,479.24 and the Nasdaq Composite was down 79.29 points, or 1.20 per cent, at 6,555.98. The tech index slipped 1.15 percent, with Microsoft Corp and Apple Inc down nearly 2 percent. Amazon.com Inc and Netflix Inc fell over 1 percent to drag the consumer discretionary sector down by 0.90 percent. Healthcare, 2018's best performing sector, dropped 1.61 per cent, while energy, last year's worst performing sector, fell 0.94 per cent as concerns about an economic slowdown also hit oil prices. A low appetite for risk sparked demand for U.S. Treasuries, sending yields on 10-year debt to a 12-month low of 2.6470 per cent. Meanwhile, the U.S. Congress is set to reconvene with no signs of a workable plan to end a 12-day-old partial shutdown and Trump not budging on his demand for $5 billion to fund a border wall. A Democrat plan to approve a two-part spending package does not include these funds. Tesla Inc sank 8.6 per cent after the electric car maker delivered fewer-than-expected Model 3 sedans in the fourth quarter and cut prices for all its vehicles in the United States in response to the loss of a green tax credit. Declining issues outnumbered advancers for a 4.22-to-1 ratio on the NYSE and a 2.43-to-1 ratio on the Nasdaq. The S&P index recorded no new 52-week highs and three new lows, while the Nasdaq recorded three new highs and 44 new lows.

Wall Street starts new year with 1% slide on global slowdown jitters

Wall Street was heading for another rout early Monday amid turmoil in Washington, with the Dow losing as much as two per cent after its worst week since the 2008 financial crisis.

At 1525 GMT, the Dow Jones Industrial Average was at 22,124.44, down 1.4 per cent after earlier sliding two per cent.

The broad-based S&amp;P 500 fell 1.3 per cent to 2,384.14, while the tech-rich Nasdaq Composite Index shed 1.0 per cent to 6,270.13.

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The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1077231267559755776?ref_src=twsrc%5Etfw">December 24, 2018</a></blockquote>
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The declines came as Treasury Secretary Steven Mnunchin was set to hold a telephone conference with top US market regulators, another effort to reassure market that analysts say may be backfiring.

On Sunday, the Treasury leader announced that he phoned top executives of the nation's six largest banks and confirmed they have adequate liquidity.

But the statement "was not especially comforting, however, given that investors had not generally been questioning market functioning in recent days, despite large declines," said a note from Wells Fargo.

The Treasury Secretary on Saturday released a statement on Twitter quoting US President Donald Trump as denying any plans to&nbsp;fire Fed Chairman Jay Powell following media reports that Trump had privately asked cabinet members if he has the authority to dismiss the Fed chief.

"It might be more reassuring if Trump himself tweeted these comments, but then again Trump has demonstrated his propensity to flip-flop on issues as he did with his stance on the current government shutdown," said a note from Oxford Economics.

"If Trump tries to remove Powell, it could throw the financial markets into deep chaos that makes the current market turmoil look tame."

Last week was the Dow and Nasdaq's worst since the 2008 financial crisis.&nbsp;

Key drivers included upset at the Federal Reserve's latest interest rate hike, the shock resignation of Defense Secretary Jim Mattis, the ongoing US-China trade war and a US government shutdown triggered Friday at midnight following unsuccessful budget negotiations between President Donald Trump and congressional Democrats.

Monday's session will close at midday ahead of Tuesday's Christmas holiday when markets will be closed. Volume was expected to be light, which could sharpen trading moves.

Wall Street was heading for another rout early Monday amid turmoil in Washington, with the Dow losing as much as two per cent after its worst week since the 2008 financial crisis.

Wall Street was heading for another rout early Monday amid turmoil in Washington, with the Dow losing as much as two per cent after its worst week since the 2008 financial crisis. At 1525 GMT, the Dow Jones Industrial Average was at 22,124.44, down 1.4 per cent after earlier sliding two per cent. The broad-based S&P 500 fell 1.3 per cent to 2,384.14, while the tech-rich Nasdaq Composite Index shed 1.0 per cent to 6,270.13. The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt! — Donald J. Trump (@realDonaldTrump) December 24, 2018 × The declines came as Treasury Secretary Steven Mnunchin was set to hold a telephone conference with top US market regulators, another effort to reassure market that analysts say may be backfiring. On Sunday, the Treasury leader announced that he phoned top executives of the nation's six largest banks and confirmed they have adequate liquidity. But the statement "was not especially comforting, however, given that investors had not generally been questioning market functioning in recent days, despite large declines," said a note from Wells Fargo. The Treasury Secretary on Saturday released a statement on Twitter quoting US President Donald Trump as denying any plans to fire Fed Chairman Jay Powell following media reports that Trump had privately asked cabinet members if he has the authority to dismiss the Fed chief. "It might be more reassuring if Trump himself tweeted these comments, but then again Trump has demonstrated his propensity to flip-flop on issues as he did with his stance on the current government shutdown," said a note from Oxford Economics. "If Trump tries to remove Powell, it could throw the financial markets into deep chaos that makes the current market turmoil look tame." Last week was the Dow and Nasdaq's worst since the 2008 financial crisis. Key drivers included upset at the Federal Reserve's latest interest rate hike, the shock resignation of Defense Secretary Jim Mattis, the ongoing US-China trade war and a US government shutdown triggered Friday at midnight following unsuccessful budget negotiations between President Donald Trump and congressional Democrats. Monday's session will close at midday ahead of Tuesday's Christmas holiday when markets will be closed. Volume was expected to be light, which could sharpen trading moves.

Wall Street stocks continue to slide over US government shutdown

Wall Street stocks were modestly higher early Tuesday as the United States headed to the polls for congressional elections seen as a referendum on Donald Trump's presidency.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.3 per cent at 25,526.12.

The broad-based S&amp;P 500 gained 0.4 per cent to 2,748.58, while the tech-rich Nasdaq Composite Index jumped 0.8 per cent to 7,363.92.

Polls are showing that Tuesday's election is most likely to yield a Democratic win in the House of Representatives and a Republican victory in the Senate.

Tuesday's session "will prove to be a great, big guessing game with respect to the results and the stock market's response to those results," said Briefing.com analyst Patrick O'Hare. "Accordingly, don't be surprised if today's action has a seesaw feel to it."

"The polls might be suggesting one thing or another, yet the experience of the Brexit vote and the 2016 presidential election has diluted the value of polling data for many participants."

Companies reporting earnings were mixed, with Booking Holding gaining 6.8 per cent and CVS Health winning 2.0 per cent but Eli Lilly shedding 2.4 per cent.

General Electric climbed 1.5 per cent after announcing it had sold its Current business to American Industrial Partners, a private equity firm, for an undisclosed sum. The assets include technology for energy efficiency at commercial and municipal facilities.

Wall Street stocks were modestly higher early Tuesday as the United States headed to the polls for congressional elections seen as a referendum on Donald Trump's presidency.

Wall Street stocks were modestly higher early Tuesday as the United States headed to the polls for congressional elections seen as a referendum on Donald Trump's presidency. About 15 minutes into trading, the Dow Jones Industrial Average was up 0.3 per cent at 25,526.12. The broad-based S&P 500 gained 0.4 per cent to 2,748.58, while the tech-rich Nasdaq Composite Index jumped 0.8 per cent to 7,363.92. Polls are showing that Tuesday's election is most likely to yield a Democratic win in the House of Representatives and a Republican victory in the Senate. Tuesday's session "will prove to be a great, big guessing game with respect to the results and the stock market's response to those results," said Briefing.com analyst Patrick O'Hare. "Accordingly, don't be surprised if today's action has a seesaw feel to it." "The polls might be suggesting one thing or another, yet the experience of the Brexit vote and the 2016 presidential election has diluted the value of polling data for many participants." Companies reporting earnings were mixed, with Booking Holding gaining 6.8 per cent and CVS Health winning 2.0 per cent but Eli Lilly shedding 2.4 per cent. General Electric climbed 1.5 per cent after announcing it had sold its Current business to American Industrial Partners, a private equity firm, for an undisclosed sum. The assets include technology for energy efficiency at commercial and municipal facilities.

US stocks rise as midterm vote gets underway

Wall Street rebounded strongly on Thursday from the prior session's rout, with tech shares leading a broad-based rally following a series of mostly good earnings reports.

The tech-rich Nasdaq Composite Index jumped 3.0 per cent to 7,318.34, a day after the index suffered its biggest decline in seven years.

The Dow Jones Industrial Average gained 1.6 per cent to 24,984.55, while the broad-based S&amp;P 500 advanced 1.9 per cent to 2,705.57.

Analysts said the gains were unsurprising after Wednesday's ugly finale, especially after strong earnings from Microsoft, Tesla Motors and others reassured investors.

"We are seeing what we call a bottom fishing today," said Howard Silverblatt, senior analyst at S&amp;P Dow Jones Indices.

Major US indices lost more than two per cent Wednesday in a bruising sell-off precipitated by fears over slowing corporate earnings growth.

Other issues that have pressured stocks include worries about rising US interest rates and uncertainty over the fallout from the murder of Saudi Arabian journalist Jamal Khashoggi.

Companies with big gains after earnings Thursday included Microsoft, which rebounded 5.8 per cent, Tesla, up 9.1 per cent, American Airlines, up 6.7 per cent, Ford, up 10.0 per cent and Twitter, up 15.5 per cent.

"After a severe sell-off its perfectly normal to see the market rebound," analyst Adam Sarhan said. "The key question: Is it a one-or two-day rally or is it a new trend?"

<iframe width="560" height="315" src="https://www.youtube.com/embed/hYX7PVhz7bY" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen></iframe>

Wall Street rebounded strongly on Thursday from the prior session's rout, with tech shares leading a broad-based rally following a series of mostly good earnings reports.

Wall Street rebounded strongly on Thursday from the prior session's rout, with tech shares leading a broad-based rally following a series of mostly good earnings reports. The tech-rich Nasdaq Composite Index jumped 3.0 per cent to 7,318.34, a day after the index suffered its biggest decline in seven years. The Dow Jones Industrial Average gained 1.6 per cent to 24,984.55, while the broad-based S&P 500 advanced 1.9 per cent to 2,705.57. Analysts said the gains were unsurprising after Wednesday's ugly finale, especially after strong earnings from Microsoft, Tesla Motors and others reassured investors. "We are seeing what we call a bottom fishing today," said Howard Silverblatt, senior analyst at S&P Dow Jones Indices. Major US indices lost more than two per cent Wednesday in a bruising sell-off precipitated by fears over slowing corporate earnings growth. Other issues that have pressured stocks include worries about rising US interest rates and uncertainty over the fallout from the murder of Saudi Arabian journalist Jamal Khashoggi. Companies with big gains after earnings Thursday included Microsoft, which rebounded 5.8 per cent, Tesla, up 9.1 per cent, American Airlines, up 6.7 per cent, Ford, up 10.0 per cent and Twitter, up 15.5 per cent. "After a severe sell-off its perfectly normal to see the market rebound," analyst Adam Sarhan said. "The key question: Is it a one-or two-day rally or is it a new trend?"

Wall Street rebounds after rout, Nasdaq +3.0%

US stocks finished a punishing session sharply lower Wednesday, with major indices sinking more than two per cent and the Dow and S&amp;P 500 tumbling and wiping out all the 2018 gains.

The Dow Jones Industrial Average lost 2.4 per cent to close at 24,583.42, a single day loss of more than 600 points.

The tech-rich Nasdaq Composite Index plummeted 4.4 per cent to finish at 7,108.40, posting its worst day since 2011, while the broad-based S&amp;P 500 sank 3.1 per cent to 2,656.15.

The losses followed a mixed day of corporate earnings that analysts fear signal the economy is exiting the "peak" earnings environment helped by US tax cuts that were enacted late last year.

Investors also have been unnerved by comments from industrial companies saying trade conflicts have raised material costs.

"Costs are increasing and it's often tariff-related. We also reached a potential peak for earnings," said Nate Thooft, senior managing director at Manulife Mutual Funds.

"Companies that show marginal weakness take a beating."

The share price declines also came after data on US home sales fell to their slowest pace in nearly two years, and a Federal Reserve report showed firms nationwide are worried about the rising hit from tariffs and widespread labor shortages.

The expectation the Fed will continue to raise interest rates also has buffeted stocks this month, alongside anxiety over the fallout from the murder of Saudi Arabian journalist Jamal Khashoggi and an ongoing budget dispute between Italy and Brussels.

Technology shares were especially hard hit Wednesday, with Amazon losing 5.9 per cent, Facebook 5.4 per cent, Google-parent Alphabet 4.8 per cent and Netflix 9.4 per cent.

Chip companies also sank following a disappointing forecast from Texas Instruments, which dropped 8.2 per cent. Applied Materials lost 5.1 per cent, Micron 8.4 per cent and Advanced Micro Devices 9.2 per cent.

A rare bright spot was Boeing, which advanced 1.3 per cent after raising its full-year profit forecast.

But other large industrial companies in the Dow fell, including Caterpillar and 3M which dropped 5.6 per cent and 4.2 per cent, respectively. The two companies also fell sharply on Tuesday following disappointing results.

US stocks finished a punishing session sharply lower Wednesday, with major indices sinking more than two per cent and the Dow and S&P 500 tumbling and wiping out all the 2018 gains.

US stocks finished a punishing session sharply lower Wednesday, with major indices sinking more than two per cent and the Dow and S&P 500 tumbling and wiping out all the 2018 gains. The Dow Jones Industrial Average lost 2.4 per cent to close at 24,583.42, a single day loss of more than 600 points. The tech-rich Nasdaq Composite Index plummeted 4.4 per cent to finish at 7,108.40, posting its worst day since 2011, while the broad-based S&P 500 sank 3.1 per cent to 2,656.15. The losses followed a mixed day of corporate earnings that analysts fear signal the economy is exiting the "peak" earnings environment helped by US tax cuts that were enacted late last year. Investors also have been unnerved by comments from industrial companies saying trade conflicts have raised material costs. "Costs are increasing and it's often tariff-related. We also reached a potential peak for earnings," said Nate Thooft, senior managing director at Manulife Mutual Funds. "Companies that show marginal weakness take a beating." The share price declines also came after data on US home sales fell to their slowest pace in nearly two years, and a Federal Reserve report showed firms nationwide are worried about the rising hit from tariffs and widespread labor shortages. The expectation the Fed will continue to raise interest rates also has buffeted stocks this month, alongside anxiety over the fallout from the murder of Saudi Arabian journalist Jamal Khashoggi and an ongoing budget dispute between Italy and Brussels. Technology shares were especially hard hit Wednesday, with Amazon losing 5.9 per cent, Facebook 5.4 per cent, Google-parent Alphabet 4.8 per cent and Netflix 9.4 per cent. Chip companies also sank following a disappointing forecast from Texas Instruments, which dropped 8.2 per cent. Applied Materials lost 5.1 per cent, Micron 8.4 per cent and Advanced Micro Devices 9.2 per cent. A rare bright spot was Boeing, which advanced 1.3 per cent after raising its full-year profit forecast. But other large industrial companies in the Dow fell, including Caterpillar and 3M which dropped 5.6 per cent and 4.2 per cent, respectively. The two companies also fell sharply on Tuesday following disappointing results.

US stocks plunge, sending Dow into the red for 2018

The Nasdaq slumped more than three per cent Wednesday afternoon as Wall Street headed for another dreary day of losses on worries about weakening US earnings growth.

The tech-rich Nasdaq Composite Index was down 3.6 per cent to 7,173.85, near 1935 GMT, on track to close lower for the seventh time in the last 10 sessions. The index is down more than 10 per cent this month.

The Dow Jones Industrial Average dropped 1.9 per cent to 24,725.47, while the broad-based S&amp;P 500 fell 2.4 per cent to 2,674.61.

The losses followed a mixed day of corporate earnings that analysts fear signal the economy is exiting the "peak" earnings environment helped by US tax cuts were enacted late last year.

Investors have also been unnerved by comments from industrial companies saying trade conflicts have raised material costs.

"Costs are increasing and it's often tariff-related. We also reached a potential peak for earnings," said Nate Thooft, senior managing director at Manulife Mutual Funds.

"Companies that show marginal weakness take a beating."

Technology shares were especially hard hit Wednesday, with Amazon losing 4.1 per cent, Facebook 4.9 per cent, Google-parent Alphabet 4.1 per cent and Netflix 8.7 per cent.

A rare bright spot was Boeing, which advanced 1.7 per cent after raising its full-year profit forecast.

But other large industrial companies in the Dow fell, including Caterpillar and 3M which dropped 5.4 per cent and 3.5 per cent, respectively. The two companies also fell sharply on Tuesday following disappointing results.

The Nasdaq slumped more than three per cent Wednesday afternoon as Wall Street headed for another dreary day of losses on worries about weakening US earnings growth.

The Nasdaq slumped more than three per cent Wednesday afternoon as Wall Street headed for another dreary day of losses on worries about weakening US earnings growth. The tech-rich Nasdaq Composite Index was down 3.6 per cent to 7,173.85, near 1935 GMT, on track to close lower for the seventh time in the last 10 sessions. The index is down more than 10 per cent this month. The Dow Jones Industrial Average dropped 1.9 per cent to 24,725.47, while the broad-based S&P 500 fell 2.4 per cent to 2,674.61. The losses followed a mixed day of corporate earnings that analysts fear signal the economy is exiting the "peak" earnings environment helped by US tax cuts were enacted late last year. Investors have also been unnerved by comments from industrial companies saying trade conflicts have raised material costs. "Costs are increasing and it's often tariff-related. We also reached a potential peak for earnings," said Nate Thooft, senior managing director at Manulife Mutual Funds. "Companies that show marginal weakness take a beating." Technology shares were especially hard hit Wednesday, with Amazon losing 4.1 per cent, Facebook 4.9 per cent, Google-parent Alphabet 4.1 per cent and Netflix 8.7 per cent. A rare bright spot was Boeing, which advanced 1.7 per cent after raising its full-year profit forecast. But other large industrial companies in the Dow fell, including Caterpillar and 3M which dropped 5.4 per cent and 3.5 per cent, respectively. The two companies also fell sharply on Tuesday following disappointing results.

Nasdaq sinks 3.6% as US stocks losses deepen

Oil prices rose on Thursday to their highest in over three years as US&nbsp;crude inventories declined and as top exporter Saudi Arabia pushes for higher prices by continuing to withhold supplies.

Brent crude oil futures rallied as high as $74.02 a barrel, the strongest since Nov. 27, 2014, and were at $73.87 per barrel at 0645 GMT, up 39 cents, or 0.5 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures added 28 cents, or 0.4 percent, to $68.75 a barrel. WTI had earlier scaled to $68.95, its best level since Dec. 2, 2014.

"The rally is due to the stock data last night and risk premiums from geopolitical tensions in the Middle East over the last few weeks, but these risk premiums are quite short-lived and investors will likely be normalizing prices lower again as the tensions ease," said OCBC analyst Barnabas Gan.

"I think oil prices are a little elevated in the short-term and we would need to have clear signs for improvement in fundamentals," Gan said, adding the market will be looking for cues from a meeting of oil producers on Friday.

The Organization of the Petroleum Exporting Countries (OPEC) and its partners in a supply reduction pact will meet in Jeddah, Saudi Arabia, on April 20. OPEC will then meet on June 22 to review its oil production policy.

OPEC and other major producers including Russia started to withhold output in 2017 to rein in oversupply that had depressed prices since 2014.

Reuters reported on Wednesday that top oil exporter Saudi Arabia would be happy to see crude rise to $80 or even $100 a barrel, which was seen as a sign that Riyadh will seek no changes to the supply-cutting deal.

"The Saudis and their colleagues in OPEC need higher oil for their fiscal positions and the Kingdom is on a bold – and costly – reform programme. So they might continue to squeeze the lemon while they have the chance," said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Since the start of the supply cuts, crude inventories have gradually declined from record levels towards long-term average levels.

In the United States, the Energy Information Administration (EIA) said on Wednesday that commercial crude stocks fell by 1.1 million barrels in the week to April 13, to 427.57 million barrels, close to the five-year average level of around 420 million barrels.

Further supporting oil prices is an expectation that the United States will re-introduce sanctions against Iran, OPEC's third-largest producer, which could result in further supply reductions from the Middle East.

 
&nbsp;

Oil prices rose on Thursday to their highest in over three years as US crude inventories declined and as top exporter Saudi Arabia pushes for higher prices by continuing to withhold supplies

Oil prices rose on Thursday to their highest in over three years as US crude inventories declined and as top exporter Saudi Arabia pushes for higher prices by continuing to withhold supplies. Brent crude oil futures rallied as high as $74.02 a barrel, the strongest since Nov. 27, 2014, and were at $73.87 per barrel at 0645 GMT, up 39 cents, or 0.5 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures added 28 cents, or 0.4 percent, to $68.75 a barrel. WTI had earlier scaled to $68.95, its best level since Dec. 2, 2014. "The rally is due to the stock data last night and risk premiums from geopolitical tensions in the Middle East over the last few weeks, but these risk premiums are quite short-lived and investors will likely be normalizing prices lower again as the tensions ease," said OCBC analyst Barnabas Gan. "I think oil prices are a little elevated in the short-term and we would need to have clear signs for improvement in fundamentals," Gan said, adding the market will be looking for cues from a meeting of oil producers on Friday. The Organization of the Petroleum Exporting Countries (OPEC) and its partners in a supply reduction pact will meet in Jeddah, Saudi Arabia, on April 20. OPEC will then meet on June 22 to review its oil production policy. OPEC and other major producers including Russia started to withhold output in 2017 to rein in oversupply that had depressed prices since 2014. Reuters reported on Wednesday that top oil exporter Saudi Arabia would be happy to see crude rise to $80 or even $100 a barrel, which was seen as a sign that Riyadh will seek no changes to the supply-cutting deal. "The Saudis and their colleagues in OPEC need higher oil for their fiscal positions and the Kingdom is on a bold – and costly – reform programme. So they might continue to squeeze the lemon while they have the chance," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. Since the start of the supply cuts, crude inventories have gradually declined from record levels towards long-term average levels. In the United States, the Energy Information Administration (EIA) said on Wednesday that commercial crude stocks fell by 1.1 million barrels in the week to April 13, to 427.57 million barrels, close to the five-year average level of around 420 million barrels. Further supporting oil prices is an expectation that the United States will re-introduce sanctions against Iran, OPEC's third-largest producer, which could result in further supply reductions from the Middle East.

Oil near 3.5-year highs as Saudi backs higher prices, US stocks draw

Asian shares edged up on Monday, with sentiment boosted by expectations that the US lawmakers will pass a long-awaited tax bill this week, while Chinese stocks were soggy on concerns about liquidity and tighter regulations in the world&#39;s second-largest economy.

Meanwhile, the launch of bitcoin futures on the CME exchange bolstered expectations the cryptocurrency&#39;s red-hot rally in the cash market could continue, although their trading debut was tepid.&nbsp;MSCI&#39;s broadest index of Asia-Pacific shares outside Japan gained 0.4 percent. Japan&#39;s Nikkei was the best performer in the region, rising 1.6 percent to edge closer to a 25-year peak of 23,382 points set last month.

European and US stocks are also expected to have a solid start to the week. The near-month FTSE futures contract and the e-mini S&amp;P futures were each up 0.2 percent. Dow futures rose 0.4 percent.&nbsp;Global stock markets have surged this year, largely led by expectations of a US tax overhaul.

The reform is seen boosting corporate profits, triggering share buybacks and higher dividend payouts - a boon for shareholders.&nbsp;Votes on the legislation are expected this week.&nbsp;But the mood was dour in Asia&#39;s biggest economy where the People&#39;s Bank of China increased rates on reverse repurchase agreements, or reverse repos, triggering concerns about tight year-end liquidity.&nbsp;

Chinese shares eased, with Shanghai&#39;s SSE Composite index down 0.2 percent after opening higher. The bluechip CSI 300 also came off the day&#39;s high to be largely unchanged.&nbsp;China will be in focus this week as investors look for news from a three day Central Economic Work conference starting Monday where Communist Party leaders will discuss economic policy, including growth targets.

&quot;While there are no obvious signs yet, we do expect a modest slowdown in Chinese growth in coming months&quot;, said Steve Waddington, portfolio manager at Insight Investment, which has A$930 billion ($712 billion) in assets under management.&nbsp;China could lower its growth target to 6.0 percent from 6.5 percent, Waddington added, amid tighter financial conditions and stricter regulation aimed at reducing leverage.

Currencies

Bitcoin futures received a lukewarm reception on its first day of trading on the CME exchange, with the near-month contract down 0.3 percent on thin volumes.&nbsp;In the cash market, bitcoin was last down 0.5 percent at $18,851 after hitting a record $19,666 on Sunday on the Luxembourg-based Bitstamp Exchange.&nbsp;

&quot;The introduction (of futures contracts) has added validity, acknowledging bitcoin as a legitimate asset&quot;, said Shane Chanel, a fund manager at ASR Wealth Advisers.&nbsp;&quot;The launch should increase buy-side pressure and potentially be the catalyst that pushes bitcoin above $20,000&quot;.

In currencies, the US dollar stayed above a 1-1/2 week trough against the Japanese yen, after slipping 0.8 percent last week.&nbsp;Trading was generally thin as investors wound up their books ahead of Christmas holidays.

The British pound inched up but was still near 3-week lows as Prime Minister Theresa May prepared for a week of difficult meetings in an effort to unite a divided cabinet over Brexit talks.&nbsp;In commodities, oil prices were slightly firmer with US crude up 30 cents at $57.60 while Brent crude rose 28 cents to $63.50.&nbsp;Spot gold was slightly up at $1,256.55.

Global stock markets have surged this year, largely led by expectations of a US tax overhaul

Asian shares edged up on Monday, with sentiment boosted by expectations that the US lawmakers will pass a long-awaited tax bill this week, while Chinese stocks were soggy on concerns about liquidity and tighter regulations in the world's second-largest economy. Meanwhile, the launch of bitcoin futures on the CME exchange bolstered expectations the cryptocurrency's red-hot rally in the cash market could continue, although their trading debut was tepid. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.4 percent. Japan's Nikkei was the best performer in the region, rising 1.6 percent to edge closer to a 25-year peak of 23,382 points set last month. European and US stocks are also expected to have a solid start to the week. The near-month FTSE futures contract and the e-mini S&P futures were each up 0.2 percent. Dow futures rose 0.4 percent. Global stock markets have surged this year, largely led by expectations of a US tax overhaul. The reform is seen boosting corporate profits, triggering share buybacks and higher dividend payouts - a boon for shareholders. Votes on the legislation are expected this week. But the mood was dour in Asia's biggest economy where the People's Bank of China increased rates on reverse repurchase agreements, or reverse repos, triggering concerns about tight year-end liquidity. Chinese shares eased, with Shanghai's SSE Composite index down 0.2 percent after opening higher. The bluechip CSI 300 also came off the day's high to be largely unchanged. China will be in focus this week as investors look for news from a three day Central Economic Work conference starting Monday where Communist Party leaders will discuss economic policy, including growth targets. "While there are no obvious signs yet, we do expect a modest slowdown in Chinese growth in coming months", said Steve Waddington, portfolio manager at Insight Investment, which has A$930 billion ($712 billion) in assets under management. China could lower its growth target to 6.0 percent from 6.5 percent, Waddington added, amid tighter financial conditions and stricter regulation aimed at reducing leverage. Currencies Bitcoin futures received a lukewarm reception on its first day of trading on the CME exchange, with the near-month contract down 0.3 percent on thin volumes. In the cash market, bitcoin was last down 0.5 percent at $18,851 after hitting a record $19,666 on Sunday on the Luxembourg-based Bitstamp Exchange. "The introduction (of futures contracts) has added validity, acknowledging bitcoin as a legitimate asset", said Shane Chanel, a fund manager at ASR Wealth Advisers. "The launch should increase buy-side pressure and potentially be the catalyst that pushes bitcoin above $20,000". In currencies, the US dollar stayed above a 1-1/2 week trough against the Japanese yen, after slipping 0.8 percent last week. Trading was generally thin as investors wound up their books ahead of Christmas holidays. The British pound inched up but was still near 3-week lows as Prime Minister Theresa May prepared for a week of difficult meetings in an effort to unite a divided cabinet over Brexit talks. In commodities, oil prices were slightly firmer with US crude up 30 cents at $57.60 while Brent crude rose 28 cents to $63.50. Spot gold was slightly up at $1,256.55.

Asian shares rise on US tax cut hopes; China in focus

Wall Street stocks fell for the second straight session Wednesday as worries about US-North Korea tensions rattled investors.

Analysts pointed to the harsh threats and sabre rattling from US President Donald Trump, including a message Wednesday on Twitter boasting &nbsp;the United States&#39; nuclear arsenal was now &quot;more powerful than ever before.&quot;

US Defense Secretary Jim Mattis, who often has emphasized the devastating costs of any conflict with North Korea, seemed to back up Trump&#39;s tone.

Mattis said North Korea must stop isolating itself and &quot;stand down&quot; in its pursuit of nuclear weapons, and Pyongyang &quot;should cease any consideration of actions that would lead to the end of its regime and the destruction of its people.&quot;

The Dow Jones Industrial Average shed 0.2 per cent to close the day at 22,048.70.

The broad-based S&amp;P 500 fell less than 0.1 per cent at the end at 2,474.02, while the tech-rich Nasdaq Composite Index dropped 0.3 per cent to 6,352.33.

The S&amp;P 500 volatility index, a measure of investor fear, rose for the second day.

&quot;It is a market that is beginning to encounter some major threats and of course the threat is geopolitical,&quot; said Peter Cardillo, chief market economist at First Standard Financial.

Dow member Disney dropped 3.9 per cent as it reported flat third-quarter revenues due in part to weakness in its cable subscription business.&nbsp;

Disney also announced it will launch two new streaming television services including one for its ESPN-branded sports channel while ending its deal with Netflix as it shifts towards direct content distribution. Netflix lost 1.5 per cent.

Priceline sank 6.9 per cent as it projected third-quarter earnings below analyst expectations.

Charter Communications rose 2.9 per cent on news Altice is exploring a bid for the cable giant. Altice USA, the subsidiary of the French company, added 0.1 per cent.&nbsp;

Priceline sank 6.9 percent as it projected third-quarter earnings below analyst expectations

Wall Street stocks fell for the second straight session Wednesday as worries about US-North Korea tensions rattled investors. Analysts pointed to the harsh threats and sabre rattling from US President Donald Trump, including a message Wednesday on Twitter boasting the United States' nuclear arsenal was now "more powerful than ever before." US Defense Secretary Jim Mattis, who often has emphasized the devastating costs of any conflict with North Korea, seemed to back up Trump's tone. Mattis said North Korea must stop isolating itself and "stand down" in its pursuit of nuclear weapons, and Pyongyang "should cease any consideration of actions that would lead to the end of its regime and the destruction of its people." The Dow Jones Industrial Average shed 0.2 per cent to close the day at 22,048.70. The broad-based S&P 500 fell less than 0.1 per cent at the end at 2,474.02, while the tech-rich Nasdaq Composite Index dropped 0.3 per cent to 6,352.33. The S&P 500 volatility index, a measure of investor fear, rose for the second day. "It is a market that is beginning to encounter some major threats and of course the threat is geopolitical," said Peter Cardillo, chief market economist at First Standard Financial. Dow member Disney dropped 3.9 per cent as it reported flat third-quarter revenues due in part to weakness in its cable subscription business. Disney also announced it will launch two new streaming television services including one for its ESPN-branded sports channel while ending its deal with Netflix as it shifts towards direct content distribution. Netflix lost 1.5 per cent. Priceline sank 6.9 per cent as it projected third-quarter earnings below analyst expectations. Charter Communications rose 2.9 per cent on news Altice is exploring a bid for the cable giant. Altice USA, the subsidiary of the French company, added 0.1 per cent.

US stocks fall as North Korea worries rise

The US Federal Reserve raised interest rates on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank&#39;s target.

The decision to lift the target overnight interest rate by 25 basis points to a range of 0.75 percent to 1.00 per cent marked one of the Fed&#39;s most convincing steps yet in the effort to return monetary policy to a more normal footing.

However, the Fed&#39;s policy-setting committee did not flag any plan to accelerate the pace of monetary tightening. Although inflation is &quot;close&quot; to the Fed&#39;s 2 per cent target, it noted that goal was &quot;symmetric,&quot; indicating a possible willingness to allow prices to rise at a slightly faster pace.

Further rate increases would only be &quot;gradual,&quot; the Fed said in its policy statement, with officials sticking to their outlook for two more rate hikes this year and three more in 2018. The Fed lifted rates once in 2016.

Business investment &quot;appears to have firmed somewhat,&quot; the Fed said in language that reflected a stronger sense of the economy&#39;s momentum.

Fresh economic forecasts released with the statement showed little change from those of the December policy meeting and gave little indication the Fed has a clear view of how the policies of Donald Trump&#39;s administration may impact the economy in 2017 and beyond.

&quot;With gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace,&quot; the Fed said, maintaining language it has used in previous statements.

Stock markets extended their gains and bond yields fell on the benign economic outlook and the continued steady path of interest rate rises signalled by the central bank.

&quot;It relieves some of the fears we&#39;ve had that perhaps the Fed was going to raise rates faster in the future. They&#39;ve chosen not to signal that,&quot; said Brad McMillan, Chief Investment Officer at Commonwealth Financial.

The Fed&#39;s projections showed the economy growing by 2.1 per cent in 2017, unchanged from the December forecast. The median estimate of the long-run interest rate, where monetary policy would be judged as having a neutral effect on the economy, held steady at 3.0 per cent.

The unemployment rate Fed officials expect by the end of the year was unchanged at 4.5 per cent, while core inflation was seen as slightly higher at 1.9 percent versus the previous 1.8 percent forecast.

Fed Chair Janet Yellen is scheduled to hold a press conference at 2:30 p.m. (1830 GMT) to discuss the policy statement.

The rate increase comes amid a broad improvement in the world economic outlook and a sense among Fed policymakers that the US&nbsp;economy is close to the central bank&#39;s employment and inflation goals.

According to the policy statement, risks to the outlook remained &quot;roughly balanced,&quot; the Fed said.

Minneapolis Fed President Neel Kashkari was the only official to dissent in Wednesday&#39;s decision, saying he preferred to leave rates unchanged.

(Reuters) 
&nbsp;

Stock markets extended their gains and bond yields fell on the benign economic outlook

The US Federal Reserve raised interest rates on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank's target. The decision to lift the target overnight interest rate by 25 basis points to a range of 0.75 percent to 1.00 per cent marked one of the Fed's most convincing steps yet in the effort to return monetary policy to a more normal footing. However, the Fed's policy-setting committee did not flag any plan to accelerate the pace of monetary tightening. Although inflation is "close" to the Fed's 2 per cent target, it noted that goal was "symmetric," indicating a possible willingness to allow prices to rise at a slightly faster pace. Further rate increases would only be "gradual," the Fed said in its policy statement, with officials sticking to their outlook for two more rate hikes this year and three more in 2018. The Fed lifted rates once in 2016. Business investment "appears to have firmed somewhat," the Fed said in language that reflected a stronger sense of the economy's momentum. Fresh economic forecasts released with the statement showed little change from those of the December policy meeting and gave little indication the Fed has a clear view of how the policies of Donald Trump's administration may impact the economy in 2017 and beyond. "With gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace," the Fed said, maintaining language it has used in previous statements. Stock markets extended their gains and bond yields fell on the benign economic outlook and the continued steady path of interest rate rises signalled by the central bank. "It relieves some of the fears we've had that perhaps the Fed was going to raise rates faster in the future. They've chosen not to signal that," said Brad McMillan, Chief Investment Officer at Commonwealth Financial. The Fed's projections showed the economy growing by 2.1 per cent in 2017, unchanged from the December forecast. The median estimate of the long-run interest rate, where monetary policy would be judged as having a neutral effect on the economy, held steady at 3.0 per cent. The unemployment rate Fed officials expect by the end of the year was unchanged at 4.5 per cent, while core inflation was seen as slightly higher at 1.9 percent versus the previous 1.8 percent forecast. Fed Chair Janet Yellen is scheduled to hold a press conference at 2:30 p.m. (1830 GMT) to discuss the policy statement. The rate increase comes amid a broad improvement in the world economic outlook and a sense among Fed policymakers that the US economy is close to the central bank's employment and inflation goals. According to the policy statement, risks to the outlook remained "roughly balanced," the Fed said. Minneapolis Fed President Neel Kashkari was the only official to dissent in Wednesday's decision, saying he preferred to leave rates unchanged. (Reuters)

US Fed raises key interest rate by 0.25% for the second time in three months

US&nbsp;stocks retreated on Monday in a broad decline as investors took a dim view of the latest turbulence surrounding the Trump administration along with geopolitical tensions emanating from Asia.

The S&amp;P 500 has rallied 11 per cent in the wake of President Donald Trump&#39;s victory in November, with investors betting on the implementation of reduced regulations, lower taxes and increased infrastructure spending.

But a lack of detail on Trump&#39;s proposals, his isolationist stance and setbacks in filling his Cabinet have made investors question whether the post-election rally has run its course as stock valuations become stretched.

Trump accused predecessor Barack Obama on Saturday of wiretapping him during the late stages of the 2016 election campaign, but offered no evidence.

Some investors worried that the accusation could delay Trump&#39;s economic agenda.

&quot;The bottom line is, investors have predicated this rally on this new administration getting things done,&quot; said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.

&quot;The more news that circulates that is now whipping Washington into a frenzy, the less bandwidth they have to focus on getting these measures through.&quot;

Adding to investor caution were rising tensions in East Asia after North Korea fired four ballistic missiles into the sea off Japan&#39;s northwest.

Trump also signed a revised executive order on Monday for a 90-day travel ban to the United States from six Muslim-majority countries, removing Iraq from the list after his controversial first attempt was blocked in the courts.

Valuations are a cause for concern. The S&amp;P 500 is trading at nearly 18 times forward earnings estimates against the long-term average of about 15 times, according to Thomson Reuters data.

Investors are also grappling with the likelihood of an interest rate hike by the US&nbsp;Federal Reserve at its meeting next week, with traders now expecting about an 85-per cent chance of a hike versus roughly 30-percent at the start of last week.

The Dow Jones Industrial Average&nbsp;fell 41.33 points, or 0.2 per cent, to 20,964.38, the S&amp;P 500 lost 7.65 points, or 0.32 per cent, to 2,375.47 and the Nasdaq Composite dropped 21.07 points, or 0.36 per cent, to 5,849.69.

Of the 11 major S&amp;P sectors, only energy up 0.2 per cent, managed a modest advance.

Among stocks, Netflix, advanced 2 per cent to $141.94 following a UBS rating upgrade to &quot;buy&quot;.

Tyson Foods dropped 2.1 per cent at $2.26 after a strain of bird flu was detected in a chicken breeder flock on a Tennessee farm contracted with the company.

Declining issues outnumbered advancing ones on the NYSE by a 2.74-to-1 ratio; on Nasdaq, a 2.57-to-1 ratio favoured decliners.

The S&amp;P 500 posted 13 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 53 new highs and 54 new lows.

(Reuters)

A lack of detail on Trump's proposals, his isolationist stance and setbacks in filling his Cabinet have vexed the Wall Street

US stocks retreated on Monday in a broad decline as investors took a dim view of the latest turbulence surrounding the Trump administration along with geopolitical tensions emanating from Asia. The S&P 500 has rallied 11 per cent in the wake of President Donald Trump's victory in November, with investors betting on the implementation of reduced regulations, lower taxes and increased infrastructure spending. But a lack of detail on Trump's proposals, his isolationist stance and setbacks in filling his Cabinet have made investors question whether the post-election rally has run its course as stock valuations become stretched. Trump accused predecessor Barack Obama on Saturday of wiretapping him during the late stages of the 2016 election campaign, but offered no evidence. Some investors worried that the accusation could delay Trump's economic agenda. "The bottom line is, investors have predicated this rally on this new administration getting things done," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago. "The more news that circulates that is now whipping Washington into a frenzy, the less bandwidth they have to focus on getting these measures through." Adding to investor caution were rising tensions in East Asia after North Korea fired four ballistic missiles into the sea off Japan's northwest. Trump also signed a revised executive order on Monday for a 90-day travel ban to the United States from six Muslim-majority countries, removing Iraq from the list after his controversial first attempt was blocked in the courts. Valuations are a cause for concern. The S&P 500 is trading at nearly 18 times forward earnings estimates against the long-term average of about 15 times, according to Thomson Reuters data. Investors are also grappling with the likelihood of an interest rate hike by the US Federal Reserve at its meeting next week, with traders now expecting about an 85-per cent chance of a hike versus roughly 30-percent at the start of last week. The Dow Jones Industrial Average fell 41.33 points, or 0.2 per cent, to 20,964.38, the S&P 500 lost 7.65 points, or 0.32 per cent, to 2,375.47 and the Nasdaq Composite dropped 21.07 points, or 0.36 per cent, to 5,849.69. Of the 11 major S&P sectors, only energy up 0.2 per cent, managed a modest advance. Among stocks, Netflix, advanced 2 per cent to $141.94 following a UBS rating upgrade to "buy". Tyson Foods dropped 2.1 per cent at $2.26 after a strain of bird flu was detected in a chicken breeder flock on a Tennessee farm contracted with the company. Declining issues outnumbered advancing ones on the NYSE by a 2.74-to-1 ratio; on Nasdaq, a 2.57-to-1 ratio favoured decliners. The S&P 500 posted 13 new 52-week highs and 7 new lows; the Nasdaq Composite recorded 53 new highs and 54 new lows. (Reuters)

Trump's travel ban and North Korea tension tempers down US stocks

The dollar stood atop large gains early on Friday after soaring broadly overnight on comments by US President Donald Trump that he would announce the most ambitious tax reform plan since the Reagan era in the next few weeks.

The dollar had enjoyed a big surge after Trump won the US elections in November on pledges to inject the economy with large-scale fiscal stimulus. But the &quot;Trump rally&quot; had faded over the past few weeks with more focus on the new president&#39;s protectionist trade rhetoric and his support for a weaker dollar.

The dollar index against a basket of major currencies was up 0.1 per cent at 100.710, its highest in three days. The index was poised to rise 0.8 per cent on the week.

The US currency received a boost as Trump promised a &quot;phenomenal&quot; tax plan in a White House meeting on Thursday with airline executives, although he did not offer specifics other than citing the need to a lower tax burden on businesses.

The euro was steady at $1.0657 after losing 0.4 percent the previous day. The common currency was on track to shed more than 1 percent on the week, during which it was dogged by perceived political risks facing the euro zone.

The dollar extended its overnight rally and edged up to a nine-day high of 113.665 yen.

The greenback soared 1.2 per cent against the yen the previous day as US Treasury yields rose sharply in the wake of Trump&#39;s comments. Treasury yields had until Thursday declined steadily to multi-week lows, pushing the dollar to a 10-week trough of 111.590 yen.

&quot;Recently, the dollar has been caught between uncertainty towards Bank of Japan policy and US-Japan currency diplomacy on one hand, and hopes for US tax reform on the other. The dollar&#39;s surge was straightforward reaction to developments in the latter,&quot; said Shusuke Yamada, chief Japan FX strategist at BOA Merrill Lynch.

Market focus turned to the two-day summit between President Trump and Japanese Prime Minister Shinzo Abe starting later on Friday.

Of concern to rejuvenated dollar bulls is the possibility of Trump reiterating his opposition to a strong dollar, and the financial markets are paying particular attention to how much currency policies are discussed at the summit.

Trump and his top trade adviser Peter Navarro criticised Germany, Japan and China last week, saying the trading partners were engaged in devaluing their currencies to the disadvantage of the United States.

&quot;Currency policy may not be a dominant topic at the summit, and that would be positive for the dollar,&quot; Yamada at BOA Merrill Lynch said.

A senior US official said while currency manipulation could come up in the talks, it was not at the top of Trump&#39;s list of topics at the summit.

Elsewhere, the New Zealand dollar inched up 0.1 per cent to $0.7189, stabilising somewhat after sliding 1.1 per cent the previous day as the country&#39;s central bank extinguished hopes that a rate hike would happen sooner rather than later.&nbsp;

(Reuters) 
&nbsp;

The 'Trump rally' had faded over the past few weeks with more focus on the new president's protectionist trade rhetoric

The dollar stood atop large gains early on Friday after soaring broadly overnight on comments by US President Donald Trump that he would announce the most ambitious tax reform plan since the Reagan era in the next few weeks. The dollar had enjoyed a big surge after Trump won the US elections in November on pledges to inject the economy with large-scale fiscal stimulus. But the "Trump rally" had faded over the past few weeks with more focus on the new president's protectionist trade rhetoric and his support for a weaker dollar. The dollar index against a basket of major currencies was up 0.1 per cent at 100.710, its highest in three days. The index was poised to rise 0.8 per cent on the week. The US currency received a boost as Trump promised a "phenomenal" tax plan in a White House meeting on Thursday with airline executives, although he did not offer specifics other than citing the need to a lower tax burden on businesses. The euro was steady at $1.0657 after losing 0.4 percent the previous day. The common currency was on track to shed more than 1 percent on the week, during which it was dogged by perceived political risks facing the euro zone. The dollar extended its overnight rally and edged up to a nine-day high of 113.665 yen. The greenback soared 1.2 per cent against the yen the previous day as US Treasury yields rose sharply in the wake of Trump's comments. Treasury yields had until Thursday declined steadily to multi-week lows, pushing the dollar to a 10-week trough of 111.590 yen. "Recently, the dollar has been caught between uncertainty towards Bank of Japan policy and US-Japan currency diplomacy on one hand, and hopes for US tax reform on the other. The dollar's surge was straightforward reaction to developments in the latter," said Shusuke Yamada, chief Japan FX strategist at BOA Merrill Lynch. Market focus turned to the two-day summit between President Trump and Japanese Prime Minister Shinzo Abe starting later on Friday. Of concern to rejuvenated dollar bulls is the possibility of Trump reiterating his opposition to a strong dollar, and the financial markets are paying particular attention to how much currency policies are discussed at the summit. Trump and his top trade adviser Peter Navarro criticised Germany, Japan and China last week, saying the trading partners were engaged in devaluing their currencies to the disadvantage of the United States. "Currency policy may not be a dominant topic at the summit, and that would be positive for the dollar," Yamada at BOA Merrill Lynch said. A senior US official said while currency manipulation could come up in the talks, it was not at the top of Trump's list of topics at the summit. Elsewhere, the New Zealand dollar inched up 0.1 per cent to $0.7189, stabilising somewhat after sliding 1.1 per cent the previous day as the country's central bank extinguished hopes that a rate hike would happen sooner rather than later. (Reuters)

Wall Street at record high after Trump's promise of 'phenomenal' tax plan

The Dow Jones Industrial Average traded above 20,000 for the first time on Wednesday, resuming a rally that began in the wake of US&nbsp;President Donald Trump&#39;s surprise election victory.

The rally was reignited by Trump&#39;s signing of numerous executive orders since his inauguration on Friday. The Dow has climbed 9 per cent since Trump took over on January 20.

&nbsp;

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet" data-lang="en">
Great! <a href="https://twitter.com/hashtag/Dow20K?src=hash">#Dow20K</a> <a href="https://t.co/wXFhXBLgag">https://t.co/wXFhXBLgag</a>
&mdash; President Trump (@POTUS) <a href="https://twitter.com/POTUS/status/824268525862879232">January 25, 2017</a></blockquote>
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&nbsp;

The index came within a point of the historic level on January 6, as investors banked on pro-growth policies and tax cuts from the new administration.

But the venerable index had stalled recently, dropping modestly in consecutive weeks, as investors grew cautious as they looked for clarity on the administration&#39;s new policies.

&quot;A seminal moment. It is just a number but it is a big number, it is certainly a flashy number,&quot; said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

&quot;There is a real belief that Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought.&quot;

If the index remains above 20,000 by closing time, the 42-session surge from the first close above 19,000 would mark the second-shortest length of time between such milestones.

The 24 trading days between 10,000 and 11,000 from March 29 to May 3 of 1999 was the fastest.

The rise from 18,000 to 19,000 took the Dow 483 trading sessions.

The move since November 22, when the index closed above 19,000 for the first time, has been spearheaded by financial stocks - with Goldman Sachs and JPMorgan accounting for about 20 per cent of the gain.

The two banks have benefited as investors bet that Trump&#39;s expected fiscal stimulus will trigger inflation and stoke a rise in interest rates.

On Wednesday, Boeing rose 2.3 per cent after its earnings and Goldman Sachs was up 0.7 per cent, helping to push the index over the top.

At 9:33 am&nbsp;ET (1433 GMT), the Dow was up 97.59 points, or 0.49 per cent, at 20,010.3, the S&amp;P 500 was up 10.33 points, or 0.45 per cent, at 2,290.4 and the Nasdaq Composite was up 38.17 points, or 0.68 per cent, at 5,639.13.

The S&amp;P and the Nasdaq also hit record intraday highs.

Advancing issues outnumbered decliners on the NYSE by 1,883 to 736. On the Nasdaq, 1,706 issues rose and 500 fell.

The S&amp;P 500 index showed 51 new 52-week highs and no new lows, while the Nasdaq recorded 96 new highs and five new lows.

(Reuters)

The rally was reignited by Trump's signing of numerous executive orders since his inauguration on Friday

The Dow Jones Industrial Average traded above 20,000 for the first time on Wednesday, resuming a rally that began in the wake of US President Donald Trump's surprise election victory. The rally was reignited by Trump's signing of numerous executive orders since his inauguration on Friday. The Dow has climbed 9 per cent since Trump took over on January 20. Great! #Dow20K https://t.co/wXFhXBLgag — President Trump (@POTUS) January 25, 2017 × The index came within a point of the historic level on January 6, as investors banked on pro-growth policies and tax cuts from the new administration. But the venerable index had stalled recently, dropping modestly in consecutive weeks, as investors grew cautious as they looked for clarity on the administration's new policies. "A seminal moment. It is just a number but it is a big number, it is certainly a flashy number," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York. "There is a real belief that Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought." If the index remains above 20,000 by closing time, the 42-session surge from the first close above 19,000 would mark the second-shortest length of time between such milestones. The 24 trading days between 10,000 and 11,000 from March 29 to May 3 of 1999 was the fastest. The rise from 18,000 to 19,000 took the Dow 483 trading sessions. The move since November 22, when the index closed above 19,000 for the first time, has been spearheaded by financial stocks - with Goldman Sachs and JPMorgan accounting for about 20 per cent of the gain. The two banks have benefited as investors bet that Trump's expected fiscal stimulus will trigger inflation and stoke a rise in interest rates. On Wednesday, Boeing rose 2.3 per cent after its earnings and Goldman Sachs was up 0.7 per cent, helping to push the index over the top. At 9:33 am ET (1433 GMT), the Dow was up 97.59 points, or 0.49 per cent, at 20,010.3, the S&P 500 was up 10.33 points, or 0.45 per cent, at 2,290.4 and the Nasdaq Composite was up 38.17 points, or 0.68 per cent, at 5,639.13. The S&P and the Nasdaq also hit record intraday highs. Advancing issues outnumbered decliners on the NYSE by 1,883 to 736. On the Nasdaq, 1,706 issues rose and 500 fell. The S&P 500 index showed 51 new 52-week highs and no new lows, while the Nasdaq recorded 96 new highs and five new lows. (Reuters)

Dow hits 20,000 mark as post-election rally resumes

Wall Street stocks finished slightly lower Monday as the new US President Donald&nbsp;Trump&nbsp;signaled he would take a tough line on&nbsp;international trade.&nbsp;

Trump&#39;s first order of business Monday was to sign an executive order officially withdrawing from the 12-nation Trans-Pacific Partnership.&nbsp;Trump&nbsp;also has also announced plans to renegotiate the North American Free Trade Agreement and his chief spokesman said the new president would not hesitate to confront China over the South China Sea.&nbsp;

US stocks rallied hard after&nbsp;Trump&#39;s surprise election win in the hopes he would lower taxes and reduce regulation, a promise he renewed on Monday. But markets have been worried the tough talk could lead to a trade war.

The Dow Jones Industrial Average&nbsp;lost 0.1 percent to close at 19,799.85.

The broad-based S&amp;P 500 dropped 0.3 percent to 2,265.20, while the tech-rich Nasdaq Composite Index&nbsp;slipped less than 0.1 percent to 5,552.94.

Qualcomm plunged 12.7&nbsp;percent following news it was sued by Apple for&nbsp;abusing its market power to demand unfair royalties, echoing charges filed days earlier by US antitrust regulators.&nbsp;Qualcomm rejected the claims and said Apple was mischaracterizing its practices.

Aetna dropped 2.7 percent and Humana gained 2.2 percent after a US judge blocked Aetna&#39;s proposed $37 billion takeover of its rival on antitrust grounds. Aetna would be forced to pay Humana $1 billion if the deal dies.

McDonald&#39;s shed 0.7 percent after reporting a slight dip in fourth-quarter earnings following 1.3 percent drop in US comparable sales. Sales in China, Japan and some other overseas markets offset the decline.

Energy shares were generally in retreat with lower oil prices, along with most pharmaceutical&nbsp;stocks. But some technology stocks pushed higher, including Google parent Alphabet, Facebook and Tesla Motors.

(AFP)

Trump signed an executive order officially withdrawing from the 12-nation Trans-Pacific Partnership on Monday

Wall Street stocks finished slightly lower Monday as the new US President Donald Trump signaled he would take a tough line on international trade. Trump's first order of business Monday was to sign an executive order officially withdrawing from the 12-nation Trans-Pacific Partnership. Trump also has also announced plans to renegotiate the North American Free Trade Agreement and his chief spokesman said the new president would not hesitate to confront China over the South China Sea. US stocks rallied hard after Trump's surprise election win in the hopes he would lower taxes and reduce regulation, a promise he renewed on Monday. But markets have been worried the tough talk could lead to a trade war. The Dow Jones Industrial Average lost 0.1 percent to close at 19,799.85. The broad-based S&P 500 dropped 0.3 percent to 2,265.20, while the tech-rich Nasdaq Composite Index slipped less than 0.1 percent to 5,552.94. Qualcomm plunged 12.7 percent following news it was sued by Apple for abusing its market power to demand unfair royalties, echoing charges filed days earlier by US antitrust regulators. Qualcomm rejected the claims and said Apple was mischaracterizing its practices. Aetna dropped 2.7 percent and Humana gained 2.2 percent after a US judge blocked Aetna's proposed $37 billion takeover of its rival on antitrust grounds. Aetna would be forced to pay Humana $1 billion if the deal dies. McDonald's shed 0.7 percent after reporting a slight dip in fourth-quarter earnings following 1.3 percent drop in US comparable sales. Sales in China, Japan and some other overseas markets offset the decline. Energy shares were generally in retreat with lower oil prices, along with most pharmaceutical stocks. But some technology stocks pushed higher, including Google parent Alphabet, Facebook and Tesla Motors. (AFP)

Wall Street stocks dip amid Trump's tough talk on trade

Wall Street stocks tumbled and the US dollar rallied Wednesday after the Federal Reserve raised interest rates for only the second time in a decade.

The policy-setting Federal Open Market Committee voted unanimously to increase the key federal funds rate to a range of 0.5 to 0.75 per cent, but repeated that the world&#39;s biggest economy likely will require only &quot;gradual&quot; rate increases going forward.

The move was expected but was coupled with a projection that central bankers now expect three interest rate increases in 2017 instead of the previously forecast two.

The decision put the brakes -- at least for now -- on the Dow&#39;s march towards the 20,000-point landmark. The blue-chip index fell 0.6 per cent to close at 19,792.53, halting a seven-day streak of record closes.

The Fed&#39;s decision also led to sharp increases in the yield of the 10-year US Treasury and strengthening of the dollar against other major currencies.

Many analysts expect the central bank will have to raise rates faster if President-elect Donald Trump&#39;s promised infrastructure spending plans and tax cuts are implemented and fuel inflation.

Federal Reserve Chair Janet Yellen agreed such policies can change decisions by central bankers, but cautioned against any premature guessing games.

&quot;I really can&#39;t tell you what the Fed&#39;s response would be to any policy changes that are put into effect,&quot; she said at a news conference.

However, FTN Financial chief economist Chris Low said the Fed&#39;s overall stance was a reality check on runaway enthusiasm about the possibilities for the US economy after Trump&#39;s win.

&quot;We&#39;ve been pricing in faster growth, bigger job gains, tax cuts -- all these positive steps,&quot; Low said. &quot;Today we were reminded that if all that happens, borrowing costs are going to have be a little higher.&quot;

&quot;It&#39;s a reminder you never get unmitigated good outcomes.&quot;

European equities retreated ahead of the Fed announcement. London drifted 0.3 percent lower while Frankfurt shed 0.4 per cent and Paris 0.7 per cent on the day. &nbsp;

Technology shares were mixed as Trump met with a group of industry leaders for the first time since the election. Amazon lost 0.7 percent, while Tesla Motors added 0.3 percent. Google parent Alphabet, Apple and Facebook were little changed.

General Motors dropped 3.8 percent on reports that its China joint venture with SAIC Motor Corp is being investigated for possible antitrust violations. A Bloomberg article citing unnamed people familiar with the matter said some dealerships were being probed over retail pricing practices.

Key figures around 2200 GMT

New York - Dow: DOWN 0.6 percent at 19,792.53 (close)

New York - S&amp;P 500: DOWN 0.8 percent at 2,253.28 (close)

New York - Nasdaq: DOWN 0.5 percent at 5,436.67 (close)

London - FTSE 100: DOWN 0.3 percent at 6,949.19 points (close)

Frankfurt - DAX 30: DOWN 0.4 percent at 11,244.84 (close)

Paris - CAC 40: DOWN 0.7 percent at 4,769.24 (close)

EURO STOXX 50: DOWN 0.6 percent at 3,217.80

Tokyo - Nikkei 225: FLAT at 19,253.61 (close)

Hong Kong - Hang Seng: UP less than 0.1 percent at 22,456.62 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,140.53 (close)

Euro/dollar: DOWN at $1.0533 from $1.0628 Tuesday

Dollar/yen: UP at 117.08 yen from 115.16 yen&nbsp;

Pound/dollar: DOWN at $1.2559 from $1.2665

Oil - West Texas Intermediate: DOWN $1.94 cents at $51.04 per barrel

Oil - Brent North Sea: DOWN $1.82 at $53.90 per barrel

(AFP)

 
&nbsp;

The Fed's decision also led to the strengthening of the dollar against other major currencies

Wall Street stocks tumbled and the US dollar rallied Wednesday after the Federal Reserve raised interest rates for only the second time in a decade. The policy-setting Federal Open Market Committee voted unanimously to increase the key federal funds rate to a range of 0.5 to 0.75 per cent, but repeated that the world's biggest economy likely will require only "gradual" rate increases going forward. The move was expected but was coupled with a projection that central bankers now expect three interest rate increases in 2017 instead of the previously forecast two. The decision put the brakes -- at least for now -- on the Dow's march towards the 20,000-point landmark. The blue-chip index fell 0.6 per cent to close at 19,792.53, halting a seven-day streak of record closes. The Fed's decision also led to sharp increases in the yield of the 10-year US Treasury and strengthening of the dollar against other major currencies. Many analysts expect the central bank will have to raise rates faster if President-elect Donald Trump's promised infrastructure spending plans and tax cuts are implemented and fuel inflation. Federal Reserve Chair Janet Yellen agreed such policies can change decisions by central bankers, but cautioned against any premature guessing games. "I really can't tell you what the Fed's response would be to any policy changes that are put into effect," she said at a news conference. However, FTN Financial chief economist Chris Low said the Fed's overall stance was a reality check on runaway enthusiasm about the possibilities for the US economy after Trump's win. "We've been pricing in faster growth, bigger job gains, tax cuts -- all these positive steps," Low said. "Today we were reminded that if all that happens, borrowing costs are going to have be a little higher." "It's a reminder you never get unmitigated good outcomes." European equities retreated ahead of the Fed announcement. London drifted 0.3 percent lower while Frankfurt shed 0.4 per cent and Paris 0.7 per cent on the day. Technology shares were mixed as Trump met with a group of industry leaders for the first time since the election. Amazon lost 0.7 percent, while Tesla Motors added 0.3 percent. Google parent Alphabet, Apple and Facebook were little changed. General Motors dropped 3.8 percent on reports that its China joint venture with SAIC Motor Corp is being investigated for possible antitrust violations. A Bloomberg article citing unnamed people familiar with the matter said some dealerships were being probed over retail pricing practices. Key figures around 2200 GMT New York - Dow: DOWN 0.6 percent at 19,792.53 (close) New York - S&P 500: DOWN 0.8 percent at 2,253.28 (close) New York - Nasdaq: DOWN 0.5 percent at 5,436.67 (close) London - FTSE 100: DOWN 0.3 percent at 6,949.19 points (close) Frankfurt - DAX 30: DOWN 0.4 percent at 11,244.84 (close) Paris - CAC 40: DOWN 0.7 percent at 4,769.24 (close) EURO STOXX 50: DOWN 0.6 percent at 3,217.80 Tokyo - Nikkei 225: FLAT at 19,253.61 (close) Hong Kong - Hang Seng: UP less than 0.1 percent at 22,456.62 (close) Shanghai - Composite: DOWN 0.5 percent at 3,140.53 (close) Euro/dollar: DOWN at $1.0533 from $1.0628 Tuesday Dollar/yen: UP at 117.08 yen from 115.16 yen Pound/dollar: DOWN at $1.2559 from $1.2665 Oil - West Texas Intermediate: DOWN $1.94 cents at $51.04 per barrel Oil - Brent North Sea: DOWN $1.82 at $53.90 per barrel (AFP)

Dow winning streak ends as Fed hikes interest rates

The rally in regional US bank stocks that followed last month&#39;s election of Donald Trump may not be over, but investors may have to wait for policy to take shape for the massive move to extend further.

The S&amp;P 600 index of small-cap banks has surged more than 20 per cent since Trump&#39;s surprise November 8 victory, while their large-cap peers on the S&amp;P 500 index have jumped over 17 per cent.

Investors booked profits on Friday, with the small-cap index down 0.8 percent and the larger banks dropping 1.1 per cent.

Smaller lenders could potentially add as much as 40 per cent to their fourth-quarter 2017 earnings if Trump&#39;s promises of tax cuts and regulatory changes materialise, according to Sandler O&#39; Neill analyst Brad Milsaps.

But Milsaps has not changed his official estimates to reflect this possibility as he is waiting for confirmation that those policy changes will happen.

Trump is scheduled to take office January 20. His Treasury Secretary nominee, Steven Mnuchin, on Wednesday, criticised the Dodd-Frank banking regulation act saying that it inhibited bank lending, potentially implying a willingness to try to change regulations to help boost that revenue source.

&quot;It remains to be seen how much longer the rally can continue until we see some tangible evidence of changes coming from the administration that relates to regulations or tax rates,&quot; said Milsaps.

Investors are betting that rising long-term interest rates, expected corporate tax cuts, as well as lighter regulation, will help banks under a Trump administration.

Domestic banks have more to gain from policy changes than their multinational counterparts as lighter regulation should make it easier for them to grow more quickly and could allow more mergers, according to investors and analysts.

They could also benefit more from expected tax cuts and they would be insulated from currency fluctuations.

&quot;There&#39;s definitely more opportunity on the regional banking level,&quot; David Lebovitz, global market strategist at JPMorgan Asset Management. &quot;When you go down in market capitalisation you begin to insulate yourself from a lot of these external forces. Dollar strengthening is less of an issue.&quot;

Bank profits depend largely on the spread between long- and short-term rates. The spread between benchmark US&nbsp;10-year Treasury notes and 2-year Treasuries has widened nearly 30 basis points since the US presidential election, touching its highest in a year on Thursday.

Adding to upward pressure on yields, the Federal Reserve is expected to raise overnight US interest rates at its meeting on Dec. 13-14 by 25 basis points, the first hike in nearly a year.

In relation to rising interest rates alone, Keefe, Bruyette &amp; Woods boosted its operating earnings growth estimates for banks with assets of $50 billion or lower to 10 per cent from 6 percent next year, and to 11 per cent from 4 per cent in 2018.

&quot;Earnings revisions, having been negative for many years, are beginning to turn positive, which is a very important step, and they&#39;re turning positive on higher revenues, which is even more important,&quot; said KBW analyst Christopher McGratty. &quot;They don&#39;t look cheap but there&#39;s a justifiable path toward the valuations they&#39;re at.&quot;

The current forward price-to-earnings for the S&amp;P small-cap bank index stands at 18.4, well above the six-year median of 15 and at its highest since April 2011.

McGratty also noted that many analysts will likely update their estimates for 2017 in coming weeks, which would tighten forward P/E multiples.

(Reuters)

The S&P 600 index of small-cap banks has surged more than 20 per cent since Trump's surprise November 8 victory

The rally in regional US bank stocks that followed last month's election of Donald Trump may not be over, but investors may have to wait for policy to take shape for the massive move to extend further. The S&P 600 index of small-cap banks has surged more than 20 per cent since Trump's surprise November 8 victory, while their large-cap peers on the S&P 500 index have jumped over 17 per cent. Investors booked profits on Friday, with the small-cap index down 0.8 percent and the larger banks dropping 1.1 per cent. Smaller lenders could potentially add as much as 40 per cent to their fourth-quarter 2017 earnings if Trump's promises of tax cuts and regulatory changes materialise, according to Sandler O' Neill analyst Brad Milsaps. But Milsaps has not changed his official estimates to reflect this possibility as he is waiting for confirmation that those policy changes will happen. Trump is scheduled to take office January 20. His Treasury Secretary nominee, Steven Mnuchin, on Wednesday, criticised the Dodd-Frank banking regulation act saying that it inhibited bank lending, potentially implying a willingness to try to change regulations to help boost that revenue source. "It remains to be seen how much longer the rally can continue until we see some tangible evidence of changes coming from the administration that relates to regulations or tax rates," said Milsaps. Investors are betting that rising long-term interest rates, expected corporate tax cuts, as well as lighter regulation, will help banks under a Trump administration. Domestic banks have more to gain from policy changes than their multinational counterparts as lighter regulation should make it easier for them to grow more quickly and could allow more mergers, according to investors and analysts. They could also benefit more from expected tax cuts and they would be insulated from currency fluctuations. "There's definitely more opportunity on the regional banking level," David Lebovitz, global market strategist at JPMorgan Asset Management. "When you go down in market capitalisation you begin to insulate yourself from a lot of these external forces. Dollar strengthening is less of an issue." Bank profits depend largely on the spread between long- and short-term rates. The spread between benchmark US 10-year Treasury notes and 2-year Treasuries has widened nearly 30 basis points since the US presidential election, touching its highest in a year on Thursday. Adding to upward pressure on yields, the Federal Reserve is expected to raise overnight US interest rates at its meeting on Dec. 13-14 by 25 basis points, the first hike in nearly a year. In relation to rising interest rates alone, Keefe, Bruyette & Woods boosted its operating earnings growth estimates for banks with assets of $50 billion or lower to 10 per cent from 6 percent next year, and to 11 per cent from 4 per cent in 2018. "Earnings revisions, having been negative for many years, are beginning to turn positive, which is a very important step, and they're turning positive on higher revenues, which is even more important," said KBW analyst Christopher McGratty. "They don't look cheap but there's a justifiable path toward the valuations they're at." The current forward price-to-earnings for the S&P small-cap bank index stands at 18.4, well above the six-year median of 15 and at its highest since April 2011. McGratty also noted that many analysts will likely update their estimates for 2017 in coming weeks, which would tighten forward P/E multiples. (Reuters)

Wall Street Week Ahead: Small banks rally pauses but may not be over yet

The US dollar sank and stock markets slammed into reverse in wild Asian trade on Wednesday as every new exit poll in the US presidential election showed the race to be a nail-biter, sending investors stampeding to safe-haven assets.

Sovereign bonds and gold shot higher while the Mexican peso went into near free fall as investors faced the real possibility of a shock win by Republican Donald Trump.

As of 0307 GMT, Trump had 139 Electoral College votes to Democrat Hillary Clinton&#39;s 109. It takes 270 to win.

Markets fear a Trump victory could cause economic and global uncertainty, preventing the Federal Reserve from raising interest rates in December, as long expected.

The scale of the scare was clear in the Mexican peso, where the dollar surged over 7 per cent in the biggest daily move since the global financial crisis.

The peso has become a touchstone for sentiment on the election as Trump&#39;s trade policies are seen as damaging to its export-heavy economy.

But the story was very different against the safe-haven yen with the dollar shedding 2.4 per cent to 102.72 yen. The euro gained 1 per cent to $1.1130.

The South Korean authorities were thought to have intervened to steady their currency and dealers were wondering if central banks globally could step in to calm nerves.

Asian stocks first rose only to retreat more than 1 percent as the session wore on and more election results flooded in, while US stock futures surrendered modest gains and recoiled more than 3 per cent.

Trump takes narrow lead

With voting completed in more than two-thirds of the 50 US states, the race was too close to call in Ohio, Florida, North Carolina, Pennsylvania, New Hampshire and Virginia, states that could be vital to deciding who wins the presidency.

Trump held slight leads in Florida and Ohio, while Fox News projected Clinton would take Virginia.

Markets have tended to favour Clinton as a status quo candidate who would be considered a safe pair of hands at home on the world stage.

&quot;In contrast, a Trump victory would trigger massive uncertainty that would likely undermine risk assets at least initially, which in turn could preclude a Fed rate hike this year,&quot; warned Michelle Girard, chief US economist at RBS.

Sovereign bonds flew ahead, pushing yields on 10-year US Treasury notes down sharply to 1.77 per cent. It had briefly touched a six-month high around 1.8960 per cent.

In share markets, MSCI&#39;s broadest index of Asia-Pacific stocks outside Japan swung to a loss of nearly 2, while the Nikkei sank 2.2 per cent.

In commodity markets, gold climbed to $1,308.00 an ounce as the dollar slid.

Oil turned tail, with US crude shedding $1.34 to $43.63 a barrel, while Brent fell $1.24 to $44.80.

(Reuters)

Markets fear a Trump victory could cause economic and global uncertainty, prevent the Fed from raising interest rates in December

The US dollar sank and stock markets slammed into reverse in wild Asian trade on Wednesday as every new exit poll in the US presidential election showed the race to be a nail-biter, sending investors stampeding to safe-haven assets. Sovereign bonds and gold shot higher while the Mexican peso went into near free fall as investors faced the real possibility of a shock win by Republican Donald Trump. As of 0307 GMT, Trump had 139 Electoral College votes to Democrat Hillary Clinton's 109. It takes 270 to win. Markets fear a Trump victory could cause economic and global uncertainty, preventing the Federal Reserve from raising interest rates in December, as long expected. The scale of the scare was clear in the Mexican peso, where the dollar surged over 7 per cent in the biggest daily move since the global financial crisis. The peso has become a touchstone for sentiment on the election as Trump's trade policies are seen as damaging to its export-heavy economy. But the story was very different against the safe-haven yen with the dollar shedding 2.4 per cent to 102.72 yen. The euro gained 1 per cent to $1.1130. The South Korean authorities were thought to have intervened to steady their currency and dealers were wondering if central banks globally could step in to calm nerves. Asian stocks first rose only to retreat more than 1 percent as the session wore on and more election results flooded in, while US stock futures surrendered modest gains and recoiled more than 3 per cent. Trump takes narrow lead With voting completed in more than two-thirds of the 50 US states, the race was too close to call in Ohio, Florida, North Carolina, Pennsylvania, New Hampshire and Virginia, states that could be vital to deciding who wins the presidency. Trump held slight leads in Florida and Ohio, while Fox News projected Clinton would take Virginia. Markets have tended to favour Clinton as a status quo candidate who would be considered a safe pair of hands at home on the world stage. "In contrast, a Trump victory would trigger massive uncertainty that would likely undermine risk assets at least initially, which in turn could preclude a Fed rate hike this year," warned Michelle Girard, chief US economist at RBS. Sovereign bonds flew ahead, pushing yields on 10-year US Treasury notes down sharply to 1.77 per cent. It had briefly touched a six-month high around 1.8960 per cent. In share markets, MSCI's broadest index of Asia-Pacific stocks outside Japan swung to a loss of nearly 2, while the Nikkei sank 2.2 per cent. In commodity markets, gold climbed to $1,308.00 an ounce as the dollar slid. Oil turned tail, with US crude shedding $1.34 to $43.63 a barrel, while Brent fell $1.24 to $44.80. (Reuters)

Dollar, Mexican peso, stocks sink as Trump takes election lead

The latest polls give Clinton a narrow national lead of between 3-5%

US stocks jumped about 1.5 per cent early Monday, joining a global rally after the FBI lifted the threat that Democratic White House candidate Hillary Clinton could face charges over her emails. One day before Americans vote on their next president, investors were bullish about preferred candidate Clinton's prospects to defeat Republican Donald Trump after FBI Director James Comey cleared her of wrongdoing over the weekend. About an hour into trading, the broad-based S&P 500 was up 1.7 per cent to 2,121.47, tentatively snapping a nine-day losing streak. The Dow Jones Industrial Average was up 1.5 per cent to 18,164.06, while the tech-rich Nasdaq Composite Index gained 2.0 percent to 5,146.08. The latest polls give Clinton a narrow national lead of between three and five percentage points, but rolling averages point to a closer race, with Trump up in some swing states. "Polls still show a fairly tight race, and with the Brexit surprise still fresh in participants' memory, there is a reluctance to take the polling information for granted," Briefing.com analyst Patrick O'Hare said. Still, the Democrat appeared to have a much more plausible road to victory in the Electoral College. Other indications of the market's greater calm on Monday was a decline in the Vix volatility index, a benchmark of investor fear, and a rise in the dollar. "The dollar and riskier assets like stocks caught a bounce to begin Election Week, getting a fillip from the FBI which over the weekend said that Hillary Clinton shouldn't face criminal charges related to her email troubles," said Joe Manimbo, senior market analyst at Western Union Business solutions. "The Sunday letter from the director of the FBI to the Congress was seen helping Mrs Clinton's chances of clinching the election which gets under way tomorrow." Gains were broad-based, but especially strong sectors included financials, with JPMorgan Chase and Goldman Sachs both climbing about 2.5 per cent, and pharmaceuticals, with Merck winning 1.4 per cent and Biogen 5.7 per cent. (AFP)

US stocks jump after FBI clears Hillary Clinton

Asian shares edged lower on Tuesday as investors nervously awaited the outcomes of two-day Federal Reserve and Bank of Japan policy meetings. 
 
&quot;The market is more nervous about the BOJ than the Fed as it may give the market a surprise,&quot; said Yutaka Miura, a senior technical analyst at Mizuho Securities. 
 
Global markets have been blowing hot and cold in recent weeks over the Fed&#39;s intentions, which remain far from clarified after both hawkish and dovish comments from several Fed officials. 
 
The consensus is that the Fed will leave interest rates unchanged at the end of its meeting on Wednesday, with investors focusing on the statement as well as Chair Janet Yellen&#39;s speech for clues on the timing of the central bank&#39;s next interest rate increase. 
 
&quot;It&#39;s a lot of uncertainty, leading into the Fed,&quot; said Jennifer Vail, head of fixed income research at U.S. Bank Wealth Management in Portland, Oregon. 
 
While Vail, like most strategists and investors, expects the Fed to refrain from taking any new steps, she said its statement could include language that&#39;s been missing from its recent assessments, such as whether economic risks were &quot;balanced&quot; or &quot;close to balanced.&quot; 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent, after major US indexes ended a choppy session nearly flat. 
 
Australian shares were 0.2 percent lower. The Australian Securities Exchange opened without incident on Tuesday after technical faults caused extensive disruptions on Monday. 
 
Japan&#39;s Nikkei stock index erased earlier losses and added 0.1 percent, as trading resumed after a public holiday on Monday. Tokyo markets will be closed for another holiday on Thursday, with the highly-anticipated BOJ meeting sandwiched in between the market closures. 
 
The BOJ could make negative interest rates the primary focus of its monetary policy at the conclusion of its meeting on Wednesday, when it conducts what it described as a &quot;comprehensive&quot; assessment of its policies. 
 
Sources have said BOJ policymakers may consider deepening negative interest rates to show its determination to maintain an ultra-easy policy bias. It unveiled the controversial policy in late January. 
 
&quot;The resulting strength of the yen since then can&#39;t really give them a positive outlook on negative rates,&quot; said US Bank Wealth Management&#39;s Vail, adding that &quot;the risk is for lack of any action, given the lack of consensus&quot; among BOJ members. 
 
Rising speculation that the BOJ will stop short of the dramatic action needed to weaken its currency helped send the dollar to a six-day low against the yen of 101.56 yen on Monday. The dollar was last steady on the day at 101.90 yen. 
 
Wary of a flattening Japanese government bond (JGB) yield curve, the BOJ also could seek ways to steepen the curve, such as making its bond buying more flexible. 
 
Policymakers got a taste last week of how markets might react when investors dumped longer-dated bonds on fears the BOJ would slow its purchasing pace. 
 
&quot;We look for the BOJ to take a more flexible stance on the time horizon for reaching its price stability target and on the pace of its JGB purchases, but expect it to refrain from further easing at this meeting,&quot; strategists at Barclays said. 
 
The euro was also steady at $1.1172, remaining well above Monday&#39;s nearly two-week low of $1.1149. 
 
The dollar index, which tracks the greenback against a basket of six major rivals, was slightly higher at 95.874, though it was shy of Friday&#39;s two-week high of 96.108. 
 
US crude oil futures slipped 0.5 percent to $43.07 a barrel, moving further away from overnight highs. Brent edged 0.3 percent lower to $45.82. 
 
Oil had rallied on Monday before settling off its highs on scepticism over Venezuela&#39;s bid to talk up a potential OPEC output freeze, and on indications US crude stockpiles had risen last week. 
 
Spot gold added 0.2 per cent to $1,315.84 an ounce, on expectations that the Fed will stand pat on rates.

(Reuters)

Global markets have been blowing hot and cold in recent weeks over the Fed's intentions, which remain far from clarified

Asian shares edged lower on Tuesday as investors nervously awaited the outcomes of two-day Federal Reserve and Bank of Japan policy meetings. "The market is more nervous about the BOJ than the Fed as it may give the market a surprise," said Yutaka Miura, a senior technical analyst at Mizuho Securities. Global markets have been blowing hot and cold in recent weeks over the Fed's intentions, which remain far from clarified after both hawkish and dovish comments from several Fed officials. The consensus is that the Fed will leave interest rates unchanged at the end of its meeting on Wednesday, with investors focusing on the statement as well as Chair Janet Yellen's speech for clues on the timing of the central bank's next interest rate increase. "It's a lot of uncertainty, leading into the Fed," said Jennifer Vail, head of fixed income research at U.S. Bank Wealth Management in Portland, Oregon. While Vail, like most strategists and investors, expects the Fed to refrain from taking any new steps, she said its statement could include language that's been missing from its recent assessments, such as whether economic risks were "balanced" or "close to balanced." MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 percent, after major US indexes ended a choppy session nearly flat. Australian shares were 0.2 percent lower. The Australian Securities Exchange opened without incident on Tuesday after technical faults caused extensive disruptions on Monday. Japan's Nikkei stock index erased earlier losses and added 0.1 percent, as trading resumed after a public holiday on Monday. Tokyo markets will be closed for another holiday on Thursday, with the highly-anticipated BOJ meeting sandwiched in between the market closures. The BOJ could make negative interest rates the primary focus of its monetary policy at the conclusion of its meeting on Wednesday, when it conducts what it described as a "comprehensive" assessment of its policies. Sources have said BOJ policymakers may consider deepening negative interest rates to show its determination to maintain an ultra-easy policy bias. It unveiled the controversial policy in late January. "The resulting strength of the yen since then can't really give them a positive outlook on negative rates," said US Bank Wealth Management's Vail, adding that "the risk is for lack of any action, given the lack of consensus" among BOJ members. Rising speculation that the BOJ will stop short of the dramatic action needed to weaken its currency helped send the dollar to a six-day low against the yen of 101.56 yen on Monday. The dollar was last steady on the day at 101.90 yen. Wary of a flattening Japanese government bond (JGB) yield curve, the BOJ also could seek ways to steepen the curve, such as making its bond buying more flexible. Policymakers got a taste last week of how markets might react when investors dumped longer-dated bonds on fears the BOJ would slow its purchasing pace. "We look for the BOJ to take a more flexible stance on the time horizon for reaching its price stability target and on the pace of its JGB purchases, but expect it to refrain from further easing at this meeting," strategists at Barclays said. The euro was also steady at $1.1172, remaining well above Monday's nearly two-week low of $1.1149. The dollar index, which tracks the greenback against a basket of six major rivals, was slightly higher at 95.874, though it was shy of Friday's two-week high of 96.108. US crude oil futures slipped 0.5 percent to $43.07 a barrel, moving further away from overnight highs. Brent edged 0.3 percent lower to $45.82. Oil had rallied on Monday before settling off its highs on scepticism over Venezuela's bid to talk up a potential OPEC output freeze, and on indications US crude stockpiles had risen last week. Spot gold added 0.2 per cent to $1,315.84 an ounce, on expectations that the Fed will stand pat on rates. (Reuters)

Asia stocks waver as investors nervously await Fed, BOJ

US stocks were lower on Friday afternoon as the possibility of a $14 billion fine against Deutsche Bank weighed on financial stocks, especially on the big Wall Street banks. 
 
The settlement proposal, made during negotiations between the US Department of Justice and Deutsche Bank over claims that the German bank mis-sold mortgage-backed securities, was larger than expected. 
 
Deutsche Bank&#39;s US-listed shares were down 9.4 per cent. Dow components Goldman Sachs and JPMorgan fell 0.9 per cent each. 
 
The S&amp;P 500 financial index dropped 0.74 per cent, dragging down the benchmark index the most. The KBW Bank index fell 0.90 per cent, putting it on track for its second straight week of decline. 
 
Traders have all but ruled out the possibility of the Federal Reserve raising interest rates at its meeting that starts next Tuesday. Investors will instead look for clues on when the central bank will eventually pull the trigger. 
 
At 12:25 a.m. ET (1625 GMT), the Dow Jones Industrial Average was down 63.62 points, or 0.35 per cent, at 18,148.86. 
 
The S&amp;P 500 was down 8.16 points, or 0.38 per cent, at 2,139.1. 
 
The Nasdaq Composite was down 6.49 points, or 0.12 percent, at 5,243.20. 
 
The technology index dropped 0.52 per cent, pulled down by Apple&#39;s a 0.8 per cent decline and Oracle&#39;s 4.1 per cent drop following a weak quarterly profit. 
 
Helping limit losses was Intel&#39;s 2.5 per cent gain after the chipmaker raised its third-quarter revenue forecast. 
 
The CBOE Market Volatility index Wall Street&#39;s &quot;fear gauge&quot;, reversed course and was down 0.43 per cent despite the expiry of futures and options on stocks and indexes, or quadruple witching. 
 
Declining issues outnumbered advancing ones on the NYSE by 1,989 to 911. On the Nasdaq, 1,492 issues fell and 1,245 advanced. 
 
The S&amp;P 500 index showed five new 52-week highs and no new lows, while the Nasdaq recorded 55 new highs and 35 new lows. 
 
(Reuters)

US stocks were lower on Friday afternoon as the possibility of a $14 billion fine against Deutsche Bank weighed on financial stocks

US stocks were lower on Friday afternoon as the possibility of a $14 billion fine against Deutsche Bank weighed on financial stocks, especially on the big Wall Street banks. The settlement proposal, made during negotiations between the US Department of Justice and Deutsche Bank over claims that the German bank mis-sold mortgage-backed securities, was larger than expected. Deutsche Bank's US-listed shares were down 9.4 per cent. Dow components Goldman Sachs and JPMorgan fell 0.9 per cent each. The S&P 500 financial index dropped 0.74 per cent, dragging down the benchmark index the most. The KBW Bank index fell 0.90 per cent, putting it on track for its second straight week of decline. Traders have all but ruled out the possibility of the Federal Reserve raising interest rates at its meeting that starts next Tuesday. Investors will instead look for clues on when the central bank will eventually pull the trigger. At 12:25 a.m. ET (1625 GMT), the Dow Jones Industrial Average was down 63.62 points, or 0.35 per cent, at 18,148.86. The S&P 500 was down 8.16 points, or 0.38 per cent, at 2,139.1. The Nasdaq Composite was down 6.49 points, or 0.12 percent, at 5,243.20. The technology index dropped 0.52 per cent, pulled down by Apple's a 0.8 per cent decline and Oracle's 4.1 per cent drop following a weak quarterly profit. Helping limit losses was Intel's 2.5 per cent gain after the chipmaker raised its third-quarter revenue forecast. The CBOE Market Volatility index Wall Street's "fear gauge", reversed course and was down 0.43 per cent despite the expiry of futures and options on stocks and indexes, or quadruple witching. Declining issues outnumbered advancing ones on the NYSE by 1,989 to 911. On the Nasdaq, 1,492 issues fell and 1,245 advanced. The S&P 500 index showed five new 52-week highs and no new lows, while the Nasdaq recorded 55 new highs and 35 new lows. (Reuters)

Wall Street hit as Deutsche Bank fine risk triggers bank rout

US stocks fell from record highs on Friday as tepid retail sales and producer price data dampened investor confidence in the economy&#39;s expansion.&nbsp; 
 
The retreat in stocks followed record high closes the previous day for all three major indexes on a recent rally that has many investors worried about pricey valuations. 
 
&quot;There&#39;s a fear of - &#39;Am I missing out and is it too late?&#39;&quot; said Jeff Carbone, senior partner at Cornerstone Financial Partners in Cornelius, North Carolina. &quot;And on the opposite side - &#39;Am I at the top and should I get out?&#39;&quot; 
 
Dow Chemical fell 2.51 per cent and was the top drag on the materials index, followed by a 1.98 per cent drop in DuPont a day after European Union regulators opened a full investigation of their $130 billion merger agreement. 
 
US retail sales growth was unexpectedly flat in July as people cut back on buying clothes and other goods, while the producer price index fell 0.4 per cent in July, the biggest drop in nearly a year. 
 
Cooling consumer spending and tame inflation suggest the Federal Reserve will probably not raise interest rates anytime soon despite a robust labour market.&nbsp; 
 
&quot;The data underscores that the Fed doesn&#39;t need to be aggressive about raising interest rates,&quot; said David Lefkowitz, senior equity strategist at UBS Wealth Management Americas.&nbsp; 
 
At 2:11 pm ET, the Dow Jones industrial average was down 0.3 per cent at 18,557.36 and the S&amp;P 500 had lost 0.2 percent to 2,181.39. 
 
The Nasdaq Composite dipped 0.11 per cent to 5,222.90. 
 
Oil prices rose nearly 2 per cent as the dollar slipped following the release of the economic data. 
 
Exxon Mobil rose 1.38 per cent and gave the biggest boost to the Dow, while Chevron added 0.6 per cent.&nbsp; 
 
Seven of the 10 major S&amp;P 500 indexes were lower, with the materials sector falling 1.3 per cent. Financials dipped 0.4 per cent.&nbsp; 
 
Nordstrom rose 8.57 per cent after the department store chain operator reported better-than-expected comparable sales and quarterly profit. 
 
Declining issues outnumbered advancing ones on the NYSE by a 1.34-to-1 ratio; on Nasdaq, a 1.33-to-1 ratio favoured decliners. 
 
The S&amp;P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 60 new highs and 27 new lows.&nbsp; 
 
(Reuters)

Materials sector, financials worst-hit following the release of economic data, as experts ask government to go easy on interest rates

US stocks fell from record highs on Friday as tepid retail sales and producer price data dampened investor confidence in the economy's expansion. The retreat in stocks followed record high closes the previous day for all three major indexes on a recent rally that has many investors worried about pricey valuations. "There's a fear of - 'Am I missing out and is it too late?'" said Jeff Carbone, senior partner at Cornerstone Financial Partners in Cornelius, North Carolina. "And on the opposite side - 'Am I at the top and should I get out?'" Dow Chemical fell 2.51 per cent and was the top drag on the materials index, followed by a 1.98 per cent drop in DuPont a day after European Union regulators opened a full investigation of their $130 billion merger agreement. US retail sales growth was unexpectedly flat in July as people cut back on buying clothes and other goods, while the producer price index fell 0.4 per cent in July, the biggest drop in nearly a year. Cooling consumer spending and tame inflation suggest the Federal Reserve will probably not raise interest rates anytime soon despite a robust labour market. "The data underscores that the Fed doesn't need to be aggressive about raising interest rates," said David Lefkowitz, senior equity strategist at UBS Wealth Management Americas. At 2:11 pm ET, the Dow Jones industrial average was down 0.3 per cent at 18,557.36 and the S&P 500 had lost 0.2 percent to 2,181.39. The Nasdaq Composite dipped 0.11 per cent to 5,222.90. Oil prices rose nearly 2 per cent as the dollar slipped following the release of the economic data. Exxon Mobil rose 1.38 per cent and gave the biggest boost to the Dow, while Chevron added 0.6 per cent. Seven of the 10 major S&P 500 indexes were lower, with the materials sector falling 1.3 per cent. Financials dipped 0.4 per cent. Nordstrom rose 8.57 per cent after the department store chain operator reported better-than-expected comparable sales and quarterly profit. Declining issues outnumbered advancing ones on the NYSE by a 1.34-to-1 ratio; on Nasdaq, a 1.33-to-1 ratio favoured decliners. The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 60 new highs and 27 new lows. (Reuters)

US stocks slide amid tepid retail sales and producer price data

US stocks traded near record highs today morning as a rise in technology stocks added to the lift from steadying oil prices. 
 
Oil edged further above $45 on estimates of a drop in US inventories and speculation of producer action to freeze output. 
 
&quot;Today, it seems like whatever oil does, equities will follow,&quot; said Peter Cardillo, chief market economist at First Standard Financial in New York. 
 
The S&amp;P 500 index&#39;s technology index rose 0.17 per cent, helped by gains in Cisco, which rose 0.7 per cent after Citigroup raised its price target. The stock gave the biggest boost to the S&amp;P and the Nasdaq. 
 
Microchip Tech soared 9.4 per cent to $61.980 after the company&#39;s first-quarter revenue beat analysts&#39; estimate. 
 
A forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets. Safe havens gold and the Japanese yen were lower today. 
 
At 9.42 a.m. ET (1342 GMT), the Dow Jones Industrial Average was up 29.2 points, or 0.16 per cent, at 18,558.49. 
 
The S&amp;P 500 was up 2.26 points, or 0.1 per cent, at 2,183.15, just 2 points shy of its 2,185.44 record high. 
 
The Nasdaq Composite was up 9.67 points, or 0.19 per cent, at 5,222.81. 
 
Seven of the 10 major S&amp;P 500 indexes were higher, led by a 0.28 per cent rise in the materials sector. 
 
Valeant jumped 11.67 per cent after the company maintained its full-year forecast and said it was evaluating alternatives for its non-core business and geographies. 
 
Endo International surged 10.5 per cent to $20.12 after the drugmaker&#39;s second-quarter revenue and profit beat estimates. The stock was the top percentage gainer among S&amp;P 500 companies. 
 
Advancing issues outnumbered decliners on the NYSE by 1,583 to 1,039. On the Nasdaq, 1,393 issues rose and 908 fell. 
 
The S&amp;P 500 index showed 18 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and eight new lows. 
 
(Reuters)

Oil edged further above $45 on estimates of a drop in US inventories

US stocks traded near record highs today morning as a rise in technology stocks added to the lift from steadying oil prices. Oil edged further above $45 on estimates of a drop in US inventories and speculation of producer action to freeze output. "Today, it seems like whatever oil does, equities will follow," said Peter Cardillo, chief market economist at First Standard Financial in New York. The S&P 500 index's technology index rose 0.17 per cent, helped by gains in Cisco, which rose 0.7 per cent after Citigroup raised its price target. The stock gave the biggest boost to the S&P and the Nasdaq. Microchip Tech soared 9.4 per cent to $61.980 after the company's first-quarter revenue beat analysts' estimate. A forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets. Safe havens gold and the Japanese yen were lower today. At 9.42 a.m. ET (1342 GMT), the Dow Jones Industrial Average was up 29.2 points, or 0.16 per cent, at 18,558.49. The S&P 500 was up 2.26 points, or 0.1 per cent, at 2,183.15, just 2 points shy of its 2,185.44 record high. The Nasdaq Composite was up 9.67 points, or 0.19 per cent, at 5,222.81. Seven of the 10 major S&P 500 indexes were higher, led by a 0.28 per cent rise in the materials sector. Valeant jumped 11.67 per cent after the company maintained its full-year forecast and said it was evaluating alternatives for its non-core business and geographies. Endo International surged 10.5 per cent to $20.12 after the drugmaker's second-quarter revenue and profit beat estimates. The stock was the top percentage gainer among S&P 500 companies. Advancing issues outnumbered decliners on the NYSE by 1,583 to 1,039. On the Nasdaq, 1,393 issues rose and 908 fell. The S&P 500 index showed 18 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and eight new lows. (Reuters)

Wall Street near record highs as oil, tech stocks lift

Gold turned lower on Thursday, as Sterling bounced higher and US stock markets came well off their lows following the suspension of Britain&#39;s campaign for next week&#39;s referendum after a member of Parliament was shot dead. 
 
British Member of Parliament Jo Cox, who was killed in the street in her constituency in northern England earlier in the day, had been a vocal supporter of Britain remaining within the EU. 
 
The turnaround in bullion prices, their first drop in seven sessions, came after rallying to the highest in nearly two years, buoyed by the US Federal Reserve, which sounded a dovish note after its latest policy meeting on Wednesday. 
 
In Euro and Sterling terms, the metal turned lower after reaching three-year highs. 
 
Spot gold was down 0.4 per cent at $1,285.76 an ounce by 2:40 pm EDT (1840 GMT), after rising to $1,315.55 an ounce, the highest since August 2014. 
 
Spot prices have bounced 6 per cent this month, after the approaching June 23 referendum - when Britons will vote on whether or not to leave the European Union, dubbed &quot;Brexit&quot; - dented appetite for assets viewed as higher risk, sending investors scurrying for bonds and gold. 
 
After the attack, campaigning for next week&#39;s referendum was suspended. 
 
U.S. gold futures for August delivery settled up 0.8 percent at $1,298.40 an ounce. 
 
&quot;A rebound in the euro and sterling, and a mirrored decline in the dollar, set gold up for a retracement,&quot; said James Steel, chief metals analyst for HSBC Securities in New York. 
 
&quot;Recovery in equities may also imply some dimming in risk-off related purchases of gold.&quot; 
 
Yields on most U.S. Treasury yields rose to session highs after British campaigning for the Brexit vote was suspended following MP Cox&#39;s death. 
 
Expectations that the U.S. central bank would press ahead with interest rate increases over the summer faded earlier this month after the release of weak U.S. payrolls data for May. 
 
&quot;Brexit worries then gave us the next boost and yesterday the FOMC provided enough dovish ammunition for it to make a new high,&quot; said Saxo Bank&#39;s head of commodity research, Ole Hansen. 
 
On Wednesday, holdings in the world&#39;s largest gold-backed exchange-traded fund, SPDR Gold Shares, rose to the highest since October 2013. 
 
Silver fell 0.4 percent to $17.43 an ounce, platinum lost 0.1 percent to $969.67 and palladium was up 0.2 percent at $533.11. 
(Reuters)

US stock markets came well off their lows following the suspension of Britain's referendum campaign after the death of British MP

Gold turned lower on Thursday, as Sterling bounced higher and US stock markets came well off their lows following the suspension of Britain's campaign for next week's referendum after a member of Parliament was shot dead. British Member of Parliament Jo Cox, who was killed in the street in her constituency in northern England earlier in the day, had been a vocal supporter of Britain remaining within the EU. The turnaround in bullion prices, their first drop in seven sessions, came after rallying to the highest in nearly two years, buoyed by the US Federal Reserve, which sounded a dovish note after its latest policy meeting on Wednesday. In Euro and Sterling terms, the metal turned lower after reaching three-year highs. Spot gold was down 0.4 per cent at $1,285.76 an ounce by 2:40 pm EDT (1840 GMT), after rising to $1,315.55 an ounce, the highest since August 2014. Spot prices have bounced 6 per cent this month, after the approaching June 23 referendum - when Britons will vote on whether or not to leave the European Union, dubbed "Brexit" - dented appetite for assets viewed as higher risk, sending investors scurrying for bonds and gold. After the attack, campaigning for next week's referendum was suspended. U.S. gold futures for August delivery settled up 0.8 percent at $1,298.40 an ounce. "A rebound in the euro and sterling, and a mirrored decline in the dollar, set gold up for a retracement," said James Steel, chief metals analyst for HSBC Securities in New York. "Recovery in equities may also imply some dimming in risk-off related purchases of gold." Yields on most U.S. Treasury yields rose to session highs after British campaigning for the Brexit vote was suspended following MP Cox's death. Expectations that the U.S. central bank would press ahead with interest rate increases over the summer faded earlier this month after the release of weak U.S. payrolls data for May. "Brexit worries then gave us the next boost and yesterday the FOMC provided enough dovish ammunition for it to make a new high," said Saxo Bank's head of commodity research, Ole Hansen. On Wednesday, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, rose to the highest since October 2013. Silver fell 0.4 percent to $17.43 an ounce, platinum lost 0.1 percent to $969.67 and palladium was up 0.2 percent at $533.11. (Reuters)

Gold falls from two-year high as Brexit campaign suspended

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