NEW YORK: A global rally in stocks paused on Tuesday, halting a nine-day advance that had sent the most widely tracked index of world stock markets to record highs.
All three of Wall Street’s major indexes dipped in US afternoon trading, sending the MSCI 47-country ‘All World’ index down slightly after it had hit record highs above 500 points after Japan’s Nikkei notched its best level since 1992 and Germany’s DAX scored a record high. The index is up nearly 20 percent for the year to date.
“You’ve had almost a perfect backdrop for equities,” said Pictet Asset Management’s global strategist Luca Paolini. “You have acceleration in nominal growth, earnings are between 10-15 (percent higher) globally and whatever you look at is pretty much in double digits.”
After hitting all-time highs shortly after the opening bell, the Dow Jones Industrial Average fell 11.21 points, or 0.05 percent, to 23,537.21, the S&P 500 lost 2.8 points, or 0.11 percent, to 2,588.33 and the Nasdaq Composite dropped 24.31 points, or 0.36 percent, to 6,762.13.
Financial stocks led the US market lower, with the S&P 500 financial sector losing 1.2 percent, the largest decline of any sector. US Treasury yields hit a two-week low.
Oil prices fell slightly after posting the biggest rise in six weeks following the Saudi crown prince’s move to tighten his grip on power and crank up tensions between the kingdom and Iran.
US crude fell 0.28 percent to $57.19 per barrel and Brent crude futures were last at $63.73, down 0.84 percent after touching a peak of $64.65.
The dollar was also on the move amid signs of more change at the Federal Reserve, while President Donald Trump’s Republican party pushes ahead with its tax cut program.
The dollar index rose 0.24 percent, with the euro down 0.28 percent to $1.1576 – the single currency’s lowest since mid-July. The Japanese yen weakened 0.23 percent to 113.97 per dollar, while sterling was last trading at $1.3153, down 0.13 percent on the day.
The Mexican peso lost 0.83 percent to 19.17 pesos to the US dollar. The Canadian dollar fell 0.61 percent versus the greenback at C$1.28 per dollar.
Benchmark 10-year notes last rose 2/32 in price to yield 2.3127 percent, from 2.32 percent late on Monday.
The 30-year bond last rose 12/32 in price to yield 2.7778 percent, from 2.796 percent late on Monday.
Germany’s 10-year bond yields held near two-month lows at 0.338 percent after the European Central Bank firmed up its plans to reinvest the proceeds of its 2.5 trillion euro stimulus program.
Source: Brecorder.com
