Global Stocks Waver on Fed Policy Outlook
01 Agosto 2019 - 11:47AM
Dow Jones News
By Caitlin Ostroff
-- European stocks waver, Asia mostly down
-- Gold, crude prices drop
-- GM and S&P Global due to report earnings
Global stocks wavered a day after the Federal Reserve cut
interest rates but its chairman didn't signal that more stimulus
was on the way.
The Stoxx Europe 600 shifted between small gains and losses in
morning trading, with rises for banks and financial services
balancing a drop in the basic-resources sector.
Shares of U.K. medical-device maker ConvaTec Group jumped 16%
after it reported falling profit in the first half of the year but
backed its full-year guidance. London Stock Exchange Group shares
also climbed, by 6.6%, after it confirmed Thursday it will buy
Refinitiv.
Shares for German industrial giant Siemens AG fell 4.8% after it
reported a drop in its quarterly profits and said a weakening
global economic environment was hurting its key industrial
businesses. Chief Executive Joe Kaeser said "geopolitics and
geoeconomics are harming an otherwise positive investment
sentiment."
Royal Dutch Shell saw shares slide 5% after profits plunged. The
company cited lower oil and gas prices and weaker refining margins,
outweighing a rise in production.
In Asia, both China's benchmark Shanghai Composite Index and
Hong Kong's Hang Seng fell 0.8%.
The People's Bank of China has often adjusted interest rates in
response to Fed policy moves, but that didn't happen following
Wednesday's cut, said Julian Evans-Pritchard, a senior China
economist for Capital Economics.
"I think the fact that they didn't follow the Fed with a cut is
a disappointment to some," he said.
The latest round of U.S.-China trade talks also concluded
Wednesday without any compromise, though both sides described the
talks as constructive. The next round will be held in
September.
U.S. stocks fell on Wednesday after Fed Chairman Jerome Powell
disappointed investors when he rolled back expectations for future
interest-rate cuts.
The 10-year U.S. Treasury yield edged up on Thursday to 2.054%,
from 2.034% on Wednesday. Yields rise when bond prices fall.
The WSJ Dollar Index, which measures the currency against a
basket of its peers, climbed 0.2%.
In commodities, global benchmark Brent crude fell 1.3% to $64.20
a barrel. Gold dropped 1.5%.
Corporate earnings for the second quarter have so far surprised
investors with a stream of better-than-expected results. Investors
will be looking to see if that continues with many reports due
today from firms including Cigna Corp., General Motors Co. and
Verizon Communications Inc.
(END) Dow Jones Newswires
August 01, 2019 05:32 ET (09:32 GMT)
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