Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL-MARKETS-Stocks fall, dollar regains ground ahead of Trump speech

Published 2017-02-28, 04:38 p/m
© Reuters. GLOBAL-MARKETS-Stocks fall, dollar regains ground ahead of Trump speech
XAU/USD
-
US500
-
DJI
-
PRU
-
GC
-
LCO
-
CL
-
IXIC
-
US2YT=X
-
US10YT=X
-
US30YT=X
-
MIWD00000PUS
-
DXY
-

* World stock index dips with Wall Street

* Investors skeptical of getting specifics in Trump speech

* Oil futures, gold down, dollar up (Updates after U.S. market close, adds commentary)

By Sinead Carew

NEW YORK, Feb 28 (Reuters) - Stocks in major markets dipped and the Dow snapped a streak of records while longer-dated Treasury yields fell as investors prepared for President Donald Trump's Tuesday night address to a joint Congress session.

The global MSCI ACWI index .MIWD00000PUS was off 0.2 percent after rising more than 8 percent since Trump's Nov. 8 election on expectations for a pro-business administration.

But some investors were not convinced Trump would reveal much in the way of concrete plans to realize key campaign promises such as tax reform. Some portfolio managers mentioned the possibility of a U.S. equities correction. significant risk for a potential delay or a watering down of the campaign promises. He can get some things done but it won't be as phenomenal as expected," said Paul Eitelman, Multi-Asset Investment Strategist at Russell Investments in Seattle.

Wall Street indexes and bond yields were not helped by fourth-quarter U.S. data including gross domestic product growth that was below expectations. Some investors had hoped for an upward revision, according to portfolio managers. Dow Jones Industrial Average .DJI fell 25.2 points, or 0.12 percent, to close at 20,812.24, breaking a 12-day run of record closing highs.

The S&P 500 .SPX lost 6.11 points, or 0.26 percent, to 2,363.64 but still ended the day 10.5 percent higher than where it closed on Nov. 8. The Nasdaq Composite .IXIC dropped 36.46 points, or 0.62 percent, to 5,825.44.

Trump met U.S. state governors at the White House on Monday and said he sees "big" infrastructure spending and is seeking a military spending hike of more than 9 percent.

"The real question becomes how much patience does the market have," said Quincy Krosby, market strategist at Prudential Financial (NYSE:PRU) in Newark, New Jersey. "If you're basing your projection on pro-growth and pro-business, it's based on the tax reform. So what the market wants to hear is that this is still a top priority and that the process is moving ahead."

The U.S. dollar clawed back earlier losses and was last up 0.2 percent against a basket of currencies .DXY . It hit a 14-year high early January but is off 0.9 percent year-to-date.

Longer-dated U.S. Treasury yields fell on month-end buying and shorter-dated yields rose on bets the Federal Reserve might raise interest rates as soon as March, resulting in part of the yield curve hitting its flattest since November.

The benchmark 10-year U.S. Treasury note yield US10YT=RR was marginally lower in late trading at 2.365 percent, while the 30-year bond yield US30YT=RR was down nearly 2 basis points at 2.967 percent.

In contrast, the two-year Treasury yield US2YT=RR , which is most sensitive to traders' view on Fed policy, was up over 3 basis points at 1.236 percent. late trading, comments from two senior Fed officials sparked a flurry of selling, with the 2-year yield jumping to its highest since December. Interest rate futures implied traders saw a nearly 57 percent chance the Fed will raise rates at its next meeting on March 14-15, up from roughly 31 percent late on Monday, according to Reuters data.

Oil futures dipped as OPEC-led output cuts were offset by concerns about increasing U.S. crude production. Brent crude LCOc1 settled down 0.6 percent at $55.59 a barrel while U.S. crude CLc1 fell further to $53.94 after settling down 0.07 percent at $54.01. O/R

Spot Gold XAU= fell 0.4 percent to $1,248.31 an ounce. On Monday it had hit a 3-1/2-month high intraday but ended lower. Forex rates in 2017:

http://tmsnrt.rs/2egbfVh

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.