LONDON: World stock markets mostly slid on Wednesday as traders took profits following recent gains that have sent indices to record or multi-year highs.
Optimism about the global economy and a string of positive earnings results have supported world equities in recent weeks.
The eurozone’s main markets Frankfurt and Paris were both lower, while London eked out a small gain thanks to a weaker pound.
Wall Street was a touch lower shortly after the opening bell.
Focus was on US President Donald Trump, in Beijing to meet Chinese counterpart Xi Jinping. Trade, a thorny issue between the two since Trump’s election a year ago, will likely top the agenda along with the North Korea crisis.
“US stocks are lower in early action, with President Donald Trump’s tour of Asia garnering attention and bolstering global trade uncertainty, while the long road to tax reform continues to face market scrutiny,” said analysts at the Charles Schwab brokerage.
In London, SSE was the top early riser in London, with its share price jumping after the British energy supplier and German-owned Npower said they agreed to merge their businesses that heat and light up millions of UK households.
But SSE later traded down over one percent as the group announced also a slump in profits.
Easing concerns about the North Korea crisis were offset by worries about the Middle East after Saudi Arabia accused Iran of “direct military aggression” over a Yemeni rebel missile attack near Riyadh.
Saudi Arabia’s powerful crown prince had accused Iran of supplying missiles to the rebels, something which he said “could be considered as an act of war”.
On currency markets the dollar took a step back against its major peers after a report said Trump’s much-vaunted corporate tax cuts could be delayed.
The Washington Post citied unnamed sources as saying Senate Republicans were considering putting off the cuts by a year to ease their cost and impact.
Trump’s tax cut promises had helped drive a rally in the dollar when they were released last month.
“Traders will be watching closely as the horse-trading continues in the week and weeks ahead,” said Greg McKenna, chief market strategist at AxiTrader.
Source: Brecorder.com
