NEW YORK -- Stocks and the dollar rose on Tuesday as the head of the Federal Reserve said the economic outlook remained strong despite uncertainty over trade policy.
Upbeat about the US economy, Federal Reserve chief Jerome Powell began two days of congressional testimony on Tuesday by indicating the central bank would continue to raise rates gradually.
Investors "seemed to appreciate Mr. Powell's calm-but-confident delivery and the recognition that his remarks didn't introduce any volatility into the marketplace," said a note from Briefing.com.
US stocks reversed modest losses from the start of trading, with the Nasdaq barreling to a record close, while the dollar strengthened. The drop in the value of the euro and pound helped push European stocks into positive territory as well.
Stock markets mostly slid across Asia, led by share price falls for the energy sector one day after oil prices plunged on excess supply concerns.
Brent crude hit another three-month low Tuesday, at $71.35 per barrel, before recovering.
While painting a positive picture about the US economy, Powell acknowledged that it was "difficult to predict the ultimate outcome of current discussions over trade policy," a clear reference to the aggressive tariff policies adopted by President Donald Trump against China and other US trading partners.
Fears about a China-US trade war continue to nag investors, with both sides filing counter-complaints at the World Trade Organization after recently imposing and threatening further tariffs on billions of dollars worth of goods.
On Tuesday, the EU and Japan signed a sweeping free trade deal that officials called a "clear message" against protectionism, as Washington imposes tariffs and threatens a trade war.
Investors are also focused on the start of the corporate earnings season, with Netflix disappointing analysts on growth in the number of its subscribers.
Its shares plunged more than 14 percent in early trading on Tuesday before recovering some of those losses.
The streaming service said membership grew 5.2 million to 130 million, a million shy of what the company had forecast. Shares finished the day down 5.2 percent.
Goldman Sachs dipped 0.2 percent after reporting a 44 percent jump in second-quarter earnings to $2.3 billion and announcing that David Solomon would succeed Lloyd Blankfein as chief executive.
In Germany, shares in Thyssenkrupp jumped 9.1 percent as the departure of another key executive boosted chances that activist investors would succeed in their effort to split apart the industrial conglomerate.
KEY FIGURES AT 2030 GMT (4:30 a.m. Wednesday in Manila)
New York - Dow: UP 0.2 percent at 25,119.89 (close)
New York - S&P 500: UP 0.4 percent to 2,809.55 (close)
New York - Nasdaq: UP 0.6 percent at 7,855.12 (close)
London - FTSE 100: UP 0.3 percent at 7,626.33 (close)
Frankfurt - DAX 30: UP 0.8 percent at 12,661.54 (close)
Paris - CAC 40: UP 0.2 percent at 5,422.54 (close)
EURO STOXX 50: UP 0.2 percent at 3,457.50 (close)
Tokyo - Nikkei 225: UP 0.4 percent at 22,697.36 (close)
Hong Kong - Hang Seng: DOWN 1.3 percent at 28,181.68 (close)
Shanghai - Composite: DOWN 0.6 percent at 2,798.31 (close)
Euro/dollar: DOWN at $1.1662 from $1.1711 at 2100 GMT
Pound/dollar: DOWN at $1.3113 from $1.3235
Dollar/yen: UP at 112.84 yen from 112.29 yen at 2100 GMT
Oil - Brent Crude: UP 32 cents at $71.84 per barrel
Oil - West Texas Intermediate: UP 2 cents at $68.08 per barrel
source: news.abs-cbn.com
NEW YORK - Upbeat data about US industry and positive corporate results sent US stocks higher on Wednesday in fresh bout of optimism.
The dollar also gained strength as expectations of multiple US interest rate rises this year returned.
European equities closed modestly higher, helped by currency weakness in the region but investors were spooked by North Korea's threat to pull out of a summit with US President Donald Trump.
Wall Street recovered from Tuesday's tumble, closing with the benchmark Dow Jones Industrial Average gaining 0.3 percent while the broader S&P 500 added 0.4 percent and tech-heavy Nasdaq rose 0.6 percent.
"We are seeing a rebound, with good data on industrial production and a rebound in oil prices," said Peter Cardillo of Spartan Capital Securities.
But trade and geopolitical concerns -- including North Korea's threat to pull out of the much touted June summit with President Donald Trump -- are "overhanging the market," he said.
Meanwhile, expectations that the Federal Reserve may hike borrowing costs up to three more times this year have sent benchmark 10-year US bond yields to seven-year highs.
"The dollar index is finding itself at its best level since December," Fawad Razaqzada of Forex.com wrote in a note.
The euro, conversely, traded around the weakest level this year, with a series of soft economic data out of the eurozone denting the prospects of an end to the European Central Bank's crisis-era stimulus. The pound continued to be dampened by Brexit uncertainty.
ITALY'S POLITICAL INSTABILITY
"Although yields are slightly weaker today, they remain well supported in the US, especially the short-dated ones, as investors continue to expect there to be at least 2 more rate increases from the Fed this year," Razaqzada added.
Ongoing uncertainty in Italy weighed on Europe's stock markets as the anti-establishment Five Star Movement and the League, which are in talks to form a government, were reportedly considering asking the ECB for debt relief.
That sent Milan's FTSE MIB index plummeting.
Investors were trying to juggle several other global issues, including the outcome of Trump's decision to pull out of the Iran nuclear deal, ongoing turmoil in the Middle East and the China-US trade spat.
There are hopes for a positive conclusion to the tariff stand-off between Washington and Beijing, but the latest round of talks will be closely monitored after a previous high-level meeting ended with no agreement and both sides far apart.
The White House confirmed that US Treasury Secretary Steven Mnuchin would lead the talks with China's Vice Premier Liu He, and Trump trade adviser and China hardliner Peter Navarro reportedly has been barred from participating.
US-Europe relations, meanwhile, appeared to hit a new low on Wednesday when the EU's top official launched a stinging attack on Trump, slamming his "capricious assertiveness," saying the US leader acted more like an enemy than a friend and called US metal tariffs "absurd."
KEY FIGURES AROUND 5 A.M. THURSDAY
New York - Dow: UP at 24,768.93 points (close)
New York - S&P 500: UP 0.4 percent at 2,722.46 (close)
New York - Nasdaq: UP 0.6 percent at 7,398.29 (close)
London - FTSE 100: UP 0.2 percent at 7,73420 (close)
Frankfurt - DAX 30: UP 0.2 percent at 12,996.33 (close)
Paris - CAC 40: UP 0.3 percent at 5,567.54 (close)
Milan - FTSE Mib: DOWN 2.3 percent at 23,734 (close)
EURO STOXX 50: FLAT at 3,562.85 (close)
Tokyo - Nikkei 225: DOWN 0.4 percent at 22,717.23 (close)
Hong Kong - Hang Seng: DOWN 0.1 percent at 31,110.20 (close)
Shanghai - Composite: DOWN 0.7 percent at 3,169.57 (close)
Euro/dollar: DOWN at $1.1808 from $1.1838 at 2100 GMT
Pound/dollar: DOWN AT $1.3491 from $1.3506
Dollar/yen: UP at 110.34 yen from 110.33 yen
Oil - Brent North Sea: 85 cents at $78.13 per barrel
Oil - West Texas Intermediate: UP 18 cents to $71.49
source: news.abs-cbn.com
NEW YORK - Wall Street stocks finished essentially flat Tuesday as investors tried to assess the potential fallout from President Donald Trump's decision to pull the US out of the Iran nuclear accord.
The Dow Jones Industrial Average ended the session 24,360.21, just a hair above Monday's close.
The broad-based S&P 500 slipped less than 0.1 percent to 2,671.92, while the tech-rich Nasdaq Composite Index edged higher to 7,266.90.
Trump lambasted the 2015 Iran deal as "disastrous" and vowed to reimpose crippling sanctions on Tehran, winning praise from Saudi Arabia and Israel, and much criticism from other sectors, as well as disagreement from traditional US allies in Europe.
US stocks were mostly negative throughout the session, but avoided major swings.
"Maybe people learned that what Trump says the first time is not what happens at the end of the day," said Maris Ogg of Tower Bridge Advisors. "It may be part of the negotiation."
"Anyway, these nebulous things don't generally have an impact on the market until we see a concrete event," she added.
Most leading oil-linked shares rose amid prospects that revived sanctions on Iran could lift commodity prices. Chevron and ConocoPhillips gained more than 1.0 percent and ExxonMobil advanced 0.5 percent.
Boeing, which had announced contracts with Iranian companies, fell 0.6 percent. But General Electric, which also was pursuing business in Iran, rose 1.4 percent.
Citigroup surged 3.7 percent following news activist fund ValueAct Capital Management built a $1.2 billion stake in the bank.
source: news.abs-cbn.com
Fed keeps rates unchanged, on track to raise rates in June
NEW YORK - US stocks fell on Wednesday as investors digested a statement from the Federal Reserve, which left interest rates steady and said inflation had "moved close" to its target, while the dollar climbed late against a basket of currencies.
Stocks, which initially gained after the Fed statement, reversed course as potential US restrictions on Chinese telecommunications companies reinforced investor concerns about trade relations between the United States and China.
In its statement, the Fed expressed confidence that a recent rise in inflation to near the US central bank's target would be sustained, leaving it on track to raise borrowing costs in June. It also said inflation "on a 12-month basis is expected to run near the Committee's symmetric 2 percent objective over the medium term."
"There wasn't any particular news to get it going other than the Fed staying the course, and that contributed to the slide in stock prices," said Robert Pavlik, chief investment strategist, senior portfolio manager at SlateStone Wealth LLC in New York.
The Fed raised rates in March and currently forecasts another two increases this year. Ahead of the statement, some investors were nervous it might sound more hawkish on policy tightening after recent concerns about rising inflation.
The US dollar fell from 2018 highs set earlier in the day after the Fed statement raised concerns that monetary accommodation will stay loose even as the central bank hikes rates. But the greenback later reversed course to trade higher.
The dollar index rose 0.3 percent, with the euro up 0.02 percent to $1.1952.
On Wall Street, the Dow Jones Industrial Average fell 174.07 points, or 0.72 percent, to 23,924.98, the S&P 500 lost 19.13 points, or 0.72 percent, to 2,635.67 and the Nasdaq Composite dropped 29.81 points, or 0.42 percent, to 7,100.90.
US President Donald Trump is considering issuing an executive order restricting certain Chinese companies from selling telecommunications equipment in the United States.
Trade relations between the United States and China have already been strained as Trump has weighed imposing tariffs on up to $150 billion of Chinese imports. A Trump administration delegation is scheduled to visit Beijing on Thursday and Friday for talks with top Chinese officials.
"It's hard to see investors willing to take increasing risk ahead of a couple more weeks of trade discussions and negotiations to come," said Matthew Miskin, market strategist at John Hancock Investments in Boston.
Forecast-beating results from the world's biggest company, Apple Inc, lifted tech shares, limiting losses in the S&P 500. Apple shares were up 4.4 percent.
Apple beat profit and revenue expectations in the first quarter, thanks to robust iPhone sales, and it announced a $100 billion share buy-back.
MSCI's gauge of stocks across the globe shed 0.39 percent.
US Treasury yields for most maturities fell as a quarterly refunding program that aims to finance the country's massive fiscal deficit came in short of expectations.
Treasury yields had risen overnight in the run-up to the refunding announcement.
US 10-year yields were at 2.970 percent, down from 2.976 percent late on Tuesday.
In the oil market, US crude rose 68 cents to settle at $67.93 a barrel, while Brent gained 23 cents to settle at $73.36.
source: news.abs-cbn.com
NEW YORK - Wall Street stocks finished lower Monday as worries about trade conflicts and Iran policy pushed aside positive earnings announcements.
US stocks started the day on a high note following strong McDonald's earnings and a stream of merger announcements, but weakened midday around the time that Israeli Prime Minister Benjamin Netanyahu accused Iran of lying about its nuclear intentions.
The Dow Jones Industrial Average lost 0.6 percent to close at 24,163.15.
The broad-based S&P 500 dropped 0.8 percent to end the session at 2,648.05, and the tech-rich Nasdaq Composite Index also shed 0.8 percent to 7,066.27.
Major deals unveiled ahead of Monday's session included T Mobile's proposed buyout of Sprint.
But shares of Sprint nosedived 13.8 percent and T Mobile fell 6.2 percent on doubts that regulators will permit the transaction to close. Other telecom companies also slid, including Dow member Verizon, which shed 4.3 percent.
Art Hogan, chief market strategist at Wunderlich Securities, attributed the market's change of heart to "geopolitical concerns" as investors try to guess whether President Donald Trump will withdraw the US from the Iran nuclear deal.
The unease also comes ahead of a Tuesday deadline for the Trump administration to enact tariffs on steel and aluminum imports from the European Union, Canada, Mexico and four other counties that currently benefit from exemptions.
McDonald's surged 5.8 percent as it reported that first-quarter earnings rose 13.2 percent to $1.4 billion, easily topping analyst expectations following strong sales in the US, China and other markets.
Twitter jumped 4.5 percent after announcing a venture to partner with Disney's ESPN business on a live sports venture. Disney rose 1.1 percent.
Andeavor surged 13.1 percent after it agreed to be acquired by fellow refiner Marathon Petroleum for $23.3 billion. Marathon dropped 8.4 percent.
source: news.abs-cbn.com
NEW YORK - Wall Street stocks tumbled Tuesday on worries about higher interest rates and disappointment over US corporate earnings reports that have been good but not strong enough to propel the market higher.
Major US indices dropped more than 1 percent, with the Dow shedding 1.7 percent for its fifth straight decline after a mid-session selloff. European stocks were mixed while Asian markets rose.
"Right now, if you look at what was driving the market for the last year or two, it was relatively high growth and a low-rate environment and a low-inflation environment, and it looks like all three of those are starting to come into question," said Shawn Cruz, manager of trader strategy at TD Ameritrade.
US stocks opened the session mildly positive, but began falling soon after the yield on the 10-year US Treasury bond hit 3.0 percent for the first time in more than four years.
The move came as commodity prices have strengthened and follows Congress' enactment in December of a sweeping tax cut supported by President Donald Trump aimed at speeding US growth.
The Federal Reserve has been gradually raising interest rates amid an improving US economy and expectations for steeper inflation. Investors fear that higher yields are a signal the central bank will need to hike interest rates more quickly than currently expected.
A more aggressive timetable for rate increases would mean higher lending costs for businesses and could prompt investors to shift funds from the equity market to bonds.
'HIGH WATER MARK'?
Adding to the downward trend were some ugly moves lower by prominent companies following earnings, including Google-parent Alphabet, which sank 4.5 percent on worries about higher costs even as quarterly earnings soared more than 70 percent to $9.4 billion.
Alphabet's woes appeared to rub off on other large technology shares, with Amazon falling 3.8 percent, Facebook losing 3.7 percent and Microsoft 2.3 percent. All 3 companies report results later this week.
"Earnings are good but not great," said Phil Davis of PSW Investments. "It's impossible to live up to the expectations."
In the Dow, Caterpillar shares sank 6.2 percent after a conference call in which chief financial officer Bradley Halverson signaled the company's first quarter would be its "high-water mark" for 2018, denting hopes of higher profits down the road. Executives also confirmed that prices of steel and other materials would be a headwind all year, lending further weight to analyst fears about inflation.
The decline was a big reversal for Caterpillar, which had opened the session sharply higher after scoring a huge jump in first-quarter profits and upgrading its full-year forecast.
3M was another big loser in the Dow, falling 6.8 percent after it lowered its full-year forecast and disclosed an $897 million charge connected to settling a lawsuit with the state of Minnesota over release of chemicals that allegedly polluted drinking water.
Analysts have been gearing up for a strong first-quarter earnings period, but there is rising anxiety about whether there is a downside to that bounty.
"There is now more discussion that first quarter earnings growth, likely to represent record strength, will mark the peak for the current business cycle," said Karl Haeling, head of capital market sales at LBBW.
KEY FIGURES 2100 GMT (5 a.m. Wednesday in Manila)
New York - Dow: DOWN 1.7 percent at 24,024.13 (close)
New York - S&P 500: DOWN 1.3 percent at 2,634.45 (close)
New York - Nasdaq: DOWN 1.7 percent at 7,007.35 (close)
London - FTSE 100: UP 0.4 percent at 7,425.40 (close)
Frankfurt - DAX 30: DOWN 0.2 percent at 12,550.82 (close)
Paris - CAC 40: UP 0.1 percent at 5,444.16 (close)
EURO STOXX 50: DOWN 0.2 percent at 3,506.96 (close)
Tokyo - Nikkei 225: UP 0.9 percent at 22,278.12 (close)
Hong Kong - Hang Seng: UP 1.3 percent at 30,636.24 (close)
Shanghai - Composite: UP 2.0 percent at 3,128.93 (close)
Euro/dollar: UP at $1.2235 from $1.2209 at 2100 GMT
Dollar/yen: UP at 108.78 yen from 108.71
Pound/dollar: UP at $1.3979 from $1.3940
Oil - Brent North Sea: DOWN 85 cents at $73.86 per barrel
Oil - West Texas Intermediate: DOWN 94 cents at $67.70 per barrel
source: news.abs-cbn.com
WASHINGTON - The US Federal Reserve raised interest rates on Wednesday and forecast at least 2 more hikes for 2018, highlighting its growing confidence that tax cuts and government spending will boost the economy and inflation and spur more aggressive future tightening.
In its first policy meeting under new Fed chief Jerome Powell, the US central bank indicated that inflation should finally move higher after years below its 2 percent target and that the economy had recently gained momentum.
The Fed also raised the estimated longer-term "neutral" rate, the level at which monetary policy neither boosts nor slows the economy, a touch, in a sign the current gradual rate hike cycle could go on longer than previously thought.
"The economic outlook has strengthened in recent months," the Fed said in a statement at the end of a two-day meeting in which it lifted its benchmark overnight lending rate by a quarter of a percentage point to a range of 1.50 percent to 1.75 percent.
Powell, who took over from former Fed chief Janet Yellen in early February, said the central bank was staying on a path of gradual rate increases but needed to be on guard against inflation.
"We are trying to take the middle ground here," Powell said in a press conference after the end of the policy meeting, adding that there were no signs the economy was on the cusp of accelerating inflation.
The rate hike was widely expected. All 104 economists polled by Reuters from March 5-13 said the Fed would increase borrowing costs this week.
US stocks rose after the policy statement before paring gains to close lower. US Treasury yields fell and then recovered. The dollar recorded its steepest one-day loss in nearly 2 months against a basket of currencies.
"The guidance in terms of the future rate hikes is a touch more hawkish than originally expected. 2019 looks like we're going to get a faster pace of rate hikes," said Matt Miskin, market strategist at John Hancock Investments.
"This a new Fed chairman starting with a bit of a hawkish tone as he takes leadership."
CONFIDENCE IN THE ECONOMY
The rate hike was the latest step away from years of stimulating the world's largest economy in the wake of the 2007-2009 financial crisis and recession. The Fed tightened policy 3 times last year.
The combination of $1.8 trillion in expected fiscal stimulus from the Trump administration and recent hints of price and wage pressures had prompted some Fed officials to speculate more Americans could be drawn into an already tight labor market.
Some even worried inflation could rise well above the Fed's target if the economy got too hot.
Policymakers were largely split on Wednesday as to whether a total of 3 or 4 rate hikes would be needed this year. They predicted rates would rise 3 times next year and 2 times in 2020, a further indication of their view that the economy is on solid footing.
"The Fed seems to be gaining confidence," said Brian Coulton, an economist at Fitch Rating in London.
Fed policymakers projected US economic growth of 2.7 percent in 2018, an increase from the 2.5 percent forecast in December, and also marked up growth for next year. The Fed's preferred measure of inflation was expected to end 2018 at 1.9 percent, unchanged from the previous forecast, but it is seen rising a bit above the target next year.
The US unemployment rate by the end of 2018 is expected to edge down to 3.8 percent, indicating the Fed sees more room for the labor market to run. Fed officials predicted the longer-run rate would settle at 4.5 percent, slightly lower than the forecast from December.
US joblessness stood at 4.1 percent last month.
While recent home sales and retail spending data have been on the weak side, the overall economic picture has brightened after growth accelerated to 2.3 percent last year.
Before the meeting, analysts were split over whether the Fed, which is wary of an early misstep under its new leadership, would raise policy tightening expectations until more price pressures are clearly evident. There are also looming outside risks to the economy such as a possible global trade war.
"This is a new risk (that) had been probably a low-profile risk, but which has become ... a more prominent risk to the outlook," Powell said, adding, however, that the trade tensions had not affected the Fed's expectations for the economy.
source: news.abs-cbn.com
NEW YORK - The dollar tumbled Wednesday while US stocks dipped after the Federal Reserve lifted interest rates but suggested it would not speed up the pace of additional hikes in 2018.
The greenback's fall suggested disappointment in the foreign exchange market that the US central bank suggested it was on pace for just 3 rate hikes in 2018 and not 4.
Earlier, European equity markets finished little changed, while oil prices rallied on data showing a drop in US petroleum inventories.
The Fed, as expected, raised its key lending rate, citing the improved US growth and employment outlook.
Newly-installed Fed Chairman Jerome Powell pointed to factors that have boosted the economic outlook in recent months, including "more stimulative" fiscal policy, in the wake of the massive tax cuts Congress passed in December.
In addition, he said "ongoing job gains are boosting incomes and confidence (and) foreign growth is on a firm trajectory."
US stocks initially rallied on the Fed announcement.
But equities later pulled back during Powell's news conference in which he was asked repeatedly about risks to the economic outlook, including from a possible trade war between the US and China. Investors also fixated on the Fed's somewhat more aggressive plans for rate hikes after 2018, analysts said.
The Dow finished down 0.2 percent at 24,682.31 after rallying as high as 24,977.65 shortly after the Fed announcement.
DOLLAR FALLS
The dollar's trajectory was more decisive, falling after the Fed announcement and not moving significantly after that.
"While there were some aspects of today's announcement that were perhaps more hawkish than some expected, ultimately the currency market appeared to focus on the unchanged projection of a total of three rate hikes for 2018, which perhaps disappointed some who expected policymakers to signal a more aggressive near-term rate path," said Nick Bennenbroek, head of currency strategy at Wells Fargo Securities.
Earlier, European markets avoided major swings, with Frankfurt ending flat and London and Paris both down modestly.
Brent oil prices rose three percent to $69.47 per barrel after a US petroleum inventory report showed lower commercial inventories.
The data added to optimism about oil prices after a committee working for the Russia-OPEC group that has capped output on Tuesday said global supplies would balance with demand by the end of September, sooner than previous forecasts.
Petroleum-linked shares jumped, with Dow members Exxon Mobil and Chevron rising 1.4 percent and 2.2 percent respectively.
But packaged food companies stumbled after General Mills warned that steepening commodity costs would dent profits. General Mills tumbled 8.9 percent while Kellogg dropped 4.0 percent, Campbell Soup 2.2 percent and Mondelez International 0.8 percent.
Tesla Motors gained 1.9 percent after shareholders approved a pay package worth potentially billions of dollars for chief executive Elon Musk if the company meets its targets for operations and market capitalization.
KEY FIGURES AROUND 5 A.M.
New York - Dow: DOWN 0.2 percent at 24,682.31 (close)
New York - S&P 500: DOWN 0.2 percent at 2,711.93 (close)
New York - Nasdaq: DOWN 0.3 percent at 7,345.28 (close)
London - FTSE 100: DOWN 0.3 percent at 7,038.97 (close)
Frankfurt - DAX 30: FLAT at 12,309.15 (close)
Paris - CAC 40: DOWN 0.2 percent at 5,239.74, (close)
EURO STOXX 50: DOWN 0.3 percent at 3,401.04 (close)
Hong Kong - Hang Seng: DOWN 0.4 percent at 31,414.52 (close)
Tokyo - Nikkei 225: Closed for public holiday
Euro/dollar: UP at $1.2343 from $1.2242 at 2100 GMT Tuesday
Pound/dollar: UP at $1.4148 from $1.3998
Dollar/yen: DOWN at 105.95 yen from 106.53 yen
Oil - Brent North Sea: UP $2.05 at $69.47 per barrel
Oil - West Texas Intermediate: UP $1.63 at $65.17
source: news.abs-cbn.com
NEW YORK - World stocks nudged higher Tuesday in cautious trading on the eve of a US Federal Reserve decision, with European gains capped by news of plunging German investor confidence.
Equities also were wobbly amid a continuing sell-off of Facebook shares, while concerns of a possible trade war sparked by President Donald Trump's announcement on tariffs also weighed.
US stocks spent most of the session in positive territory and finished with modest gains. However, the Nasdaq in particular experienced multiple bouts of selling before recovering.
In Germany, a survey of 220 analysts and investors from the ZEW institute fell to 5.1 -- a slump of 12.7 points from February and far below the 13.1 forecast by analysts.
The last time the confidence reading was so low was in the months after Britain's June 2016 vote to quit the European Union.
FACEBOOK FALLS AGAIN
London stocks meanwhile gained ground after data showing a slowdown in British annual inflation in February, which analysts said took some pressure off the Bank of England to raise rates and led to a weakening of the pound.
"Small gains in UK and European markets have not put much of a dent in yesterday's losses," IG analyst Chris Beauchamp said.
US stocks pushed higher, boosted by gains in oil-linked shares despite lingering worries about trade and a Facebook data scandal that hit social media shares and led to punishing losses in the broader market on Monday.
Facebook dropped 2.6 percent, adding to Monday's big decline on word the Federal Trade Commission was investigating the company over reports that a data analysis firm hired by Trump's presidential campaign misused the data of some 50 million users.
Twitter, another big social media company, slumped 10.4 percent after Israeli Justice Minister Ayelet Shaked threatened "legal action" against the microblogging network for not doing enough to counter messages that incite violence against Israel.
Investors also were keeping a close watch on the Fed's meeting this week, seeking clues about its timetable for tightening monetary policy.
The dollar rose against the euro and other currencies ahead of Wednesday's Fed announcement. The US currency is expected to rally further if the Fed signals it expects four interest rate hikes this year rather than three.
"However if it stays at three hikes this year (two more after tomorrow's tightening), the dollar will fall," Kathy Lien of BK Asset Management predicted.
But she said the Fed may prefer the less hawkish route.
"There is no real advantage to telegraphing four rounds of tightening so early in the year," Lien said. "They can wait and see how the economy and the markets absorb the first two hikes before suggesting that two more will follow. This gives the Fed flexibility in the months ahead."
KEY FIGURES AT AROUND 2100 GMT (5 a.m. Wednesday in Manila)
New York - Dow: UP 0.5 percent at 24,727.27 (close)
New York - S&P 500: UP 0.2 percent at 2,716.94 (close)
New York - Nasdaq: UP 0.3 percent at 7,364.30 (close)
London - FTSE 100: UP 0.3 percent at 7,061.27 (close)
Frankfurt - DAX 30: UP 0.7 percent at 12,307.33 (close)
Paris - CAC 40: UP 0.6 percent at 5,252.43 (close)
EURO STOXX 50: UP 0.5 percent at 3,413.11 (close)
Tokyo - Nikkei 225: DOWN 0.5 percent at 21,380.97 (close)
Hong Kong - Hang Seng: UP 0.1 percent at 31,549.93 (close)
Euro/dollar: DOWN at $1.2242 from $1.2335 at 2200 GMT Monday
Pound/dollar: DOWN at $1.3996 from $1.4024
Dollar/yen: UP at 106.54 yen from 106.10 yen
Oil - Brent North Sea: UP $1.37 at $67.42 per barrel
Oil - West Texas Intermediate: UP $1.34 at $63.40 per barrel
source: news.abs-cbn.com
NEW YORK - Global stocks finished mixed Wednesday as markets weighed conflicting signs on the Trump administration's trade plans following the departure of a key White House economic adviser.
Worries about a trade war hung over trading floors around the world, pushing Asian bourses lower while European markets rallied into positive territory after early weakness.
US stocks opened sharply lower on news that market-friendly White House economic advisor Gary Cohn would depart the White House in the coming weeks, sparking worries the US presidency would tilt towards sharp protectionism.
But US stocks rallied somewhat late in the session after White House press secretary Sarah Sanders said there were "potential carve-outs for Mexico and Canada" and for other countries based on national security.
Uncertainty about the US policy has shadowed global markets since US President Donald Trump's pronouncement late last week to enact stiff tariffs on steel and aluminum imports.
European Union officials outlined planned retaliatory measures on targeted American exports -- from steel, industrial and agricultural items to flagship products such as jeans and motorbikes, peanut butter and bourbon -- to be rolled out if the US makes good on its threat.
"Trade wars are bad and easy to lose," EU President Donald Tusk told a news conference Wednesday, directly rebuffing Trump's assertion last week they were "good and easy to win."
Warning of "a serious trade dispute" between Washington and the rest of the world, Tusk said leaders of the bloc would hold emergency talks on the issue on March 22-23.
Still, analysts noted that the White House has not released final details of the tariffs. That has led to speculation Trump's threats may be "posturing" or "part of the negotiation process," said Art Hogan, chief market strategist at Wunderlich Securities.
"This market is trying to take a neutral to moderately negative stance until we have more information," Hogan added.
"Nobody knows what the tariffs are going to be," said JJ Kinahan, chief market strategist at TD Ameritrade. "This administration tends to throw things out, get people riled up and then settle on something a bit more pragmatic. We'll see if that's the case here."
KEY FIGURES AROUND 2130 GMT (5:30 a.m. Thursday in Manila)
New York - Dow: DOWN 0.3 percent at 24,801.36 (close)
New York - S&P 500: DOWN 0.1 percent at 2,726.80 (close)
New York - Nasdaq: UP 0.3 percent at 7,396.65 (close)
London - FTSE 100: UP 0.2 percent at 7,157.84 points (close)
Frankfurt - DAX 30: UP 1.1 percent at 12,245.36 (close)
Paris - CAC 40: UP 0.3 percent at 5,187.83 (close)
EURO STOXX 50: UP 0.6 percent at 3,377.36
Seoul - KOSPI: DOWN 0.4 percent at 2,401.82 (close)
Tokyo - Nikkei 225: DOWN 0.8 percent at 21,252.72 (close)
Hong Kong - Hang Seng: DOWN 1.0 percent at 30,196.92 (close)
Shanghai - Composite: DOWN 0.6 percent at 3,271.67 (close)
Euro/dollar: UP at $1.2413 from $1.2404 at 2200 GMT
Pound/dollar: UP at $1.3901 from $1.3888
Dollar/yen: DOWN at 106.05 yen from 106.13 yen
Oil - Brent North Sea: DOWN $1.45 at $64.34 per barrel
Oil - West Texas Intermediate: DOWN $1.45 at $61.15 per barrel
source: news.abs-cbn.com
NEW YORK - Global equities fell Wednesday, with Wall Street dragged lower on worries about higher interest rates, while the British pound tumbled as Brexit talks with the EU hit another stumbling block.
US stocks dropped for the second straight session, as investors continued to digest Tuesday's congressional testimony from new Federal Reserve Chairman Jerome Powell that sparked talk the US central bank would accelerate the pace of interest rate hikes.
Those worries also dogged markets on Wednesday, analysts said.
"I think it's just a concern about higher interest rates," said Jack Ablin, chief investment officer at Cresset Wealth Advisors.
"Unfortunately, we may have to wait for first-quarter earnings to kind of break out of the cycle we're in."
Wall Street equities were also pressured by hefty declines in petroleum-linked shares following a bearish US oil inventory report.
The Dow finished down 1.5 percent.
Equity markets in Paris, Frankfurt and London all fell, along with Asian markets, which took their lead from Wall Street. Sentiment also took a hit with news of the third successive monthly fall in China's purchasing managers' index (PMI) survey of factory activity.
The index reached a 19-month low in February. That news weighed heavily on London's energy and mining sectors because the Asian powerhouse economy is a top consumer of raw materials.
The dollar continued its advance against the euro and moved sharply higher against the British pound after British Prime Minister Theresa May angrily rejected the EU's draft proposal for Brexit.
The EU proposes keeping British-ruled Northern Ireland in a customs union if there is no better solution to avoid a hard border with EU-member Ireland, and its chief negotiator said the pace of trade talks needs to pick up to reach a deal this year.
"The comments reminded investors of the long road and difficult road ahead for the Brexit talks and added to the pound's heavier tone against the dollar overnight," said Omer Esiner, analyst at Commonwealth FX.
KEY FIGURES AT AROUND 2200 GMT (6 a.m. Thursday in Manila)
New York - DOW: DOWN 1.5 percent at 25,029.20 (close)
New York - S&P 500: DOWN 1.1 percent at 2,713.83 (close)
New York - Nasdaq: DOWN 0.8 percent at 7,273.01 (close)
London - FTSE 100: DOWN 0.7 percent at 7,231.91 (close)
Frankfurt - DAX 30: DOWN 0.4 percent at 12,435.85 (close)
Paris - CAC 40: DOWN 0.4 percent at 5,320.49 (close)
EURO STOXX 50: DOWN 0.6 percent at 3,438.96 (close)
Tokyo - Nikkei 225: DOWN 1.4 percent at 22,068.24 (close)
Hong Kong - Hang Seng: DOWN 1.4 percent at 30,844.72 (close)
Shanghai - Composite: DOWN 1.0 percent at 3,259.41 (close)
Euro/dollar: DOWN at $1.2201 from $1.2233
Pound/dollar: DOWN at $1.3769 from $1.3909
Dollar/yen: DOWN at 106.71 yen from 107.33 yen
Oil - Brent North Sea: DOWN 85 cents at $65.78 per barrel
Oil - West Texas Intermediate: DOWN $1.37 at $61.64 per barrel
source: news.abs-cbn.com
NEW YORK - European markets mounted a nervous recovery Wednesday while US finished lower as investors across the globe settled in for a period of volatility after this week's wild swings.
Divided opinion on the outlook for markets means "volatility is back, and investors had better get used to it," said Lee Wild, head of equity strategy at Interactive Investor.
Wild noted that "just as markets cannot keep rising forever, they must also stop falling at some point, but it's still unclear whether we've reached a level where buyers see value again."
Bourses in London, Paris and Frankfurt all rose more than 1.5 percent, clawing back around two-thirds of the previous day's losses.
US stocks also appeared headed for solid gains at mid-morning, but the rally faded and all three indices ended lower, with the Nasdaq shedding the most, with a loss of 0.9 percent.
"Right now, it looks like we are trying to make a bottom," said Quincy Krosby, chief market strategist at Prudential Annuities.
Analysts say worries about higher US interest rates were the prime catalyst for this week's turmoil, but the severity of the price swings was exacerbated by computerized trading programs.
The pullback follows a series of records after the US enacted massive tax cuts plan favored by President Donald Trump in December. Many analysts remain upbeat on the US economy and the chances of further stock market gains, but are expecting more swings.
"We continue to believe in the New Yorker's risk management creed: there is never just one cockroach," Nicholas Colas of DataTrek Research said in a note.
"The blow up in the volatility space yesterday counts as one insect. Where are the rest?"
Colas suggested markets would remain cautious and not rally significantly until it regains confidence.
Oil shares were an especially weak sector after a US Energy Department report showed US oil production last week exceeded 10 million barrels a day for the first time since 1983.
Dow member ExxonMobil and Chevron and oil services giants Halliburton and Schlumberger all fell close to two percent.
KEY FIGURES AROUND 2200 GMT (6 a.m. Thursday in Manila)
New York - DOW: DOWN 0.1 percent at 24,893.35 (close)
New York - S&P 500: DOWN 0.5 percent at 2,681.66 (close)
New York - Nasdaq: DOWN 0.9 percent at 7,051.98 (close)
London - FTSE 100: UP 1.9 percent at 7,279.42 points (close)
Frankfurt - DAX 30: UP 1.6 percent at 12,590.43 (close)
Paris - CAC 40: UP 1.8 percent at 5,255.90 (close)
EURO STOXX 50: UP 1.8 percent at 3,455.83
Tokyo - Nikkei 225: UP 0.2 percent at 21,645.37 (close)
Hong Kong - Hang Seng: DOWN 0.9 percent at 30,323.20 (close)
Shanghai - Composite: DOWN 1.8 percent at 3,309.26 (close)
Euro/dollar: DOWN at $1.2269 from $1.2376 at 2200 GMT
Pound/dollar: DOWN at $1.3881 from $1.3948
Dollar/yen: DOWN at 109.28 yen from 109.54 yen
Oil - Brent North Sea: DOWN $1.35 at $65.51 per barrel
Oil - West Texas Intermediate: DOWN $1.60 at $61.79 per barrel
source: news.abs-cbn.com
NEW YORK - US stocks saw their biggest 1-day fall in 6 years on Monday, as investor profit taking brought the market back down from record highs seen in late January, after benchmark bond yields rose to a four year high last week.
The Dow Jones Industrial Average fell nearly 1,600 points for its biggest intraday drop in history in points terms, or more than 6.0 percent, before ending down 1,175.21 points, or 4.6 percent for its biggest one-day fall since August 2011.
Only last month the Dow and benchmark S&P 500 index had their best monthly gains in 2 years, with stocks reaching record levels on Jan. 26, supported by the benefit of a cut in US corporate taxes in December, rising earnings, and healthy global economic growth.
But with the Federal Reserve seen likely to raise short term interest rates another 3 or 4 times in 2018, bond yields have been rising, and last Friday's healthy US labor market report sparked fears of rising inflation, leading to Monday's sharp bout of profit taking.
"The market is looking for a new sustainable valuation level for both stocks and bonds, and that to me is the underlying catalyst," said Jim Paulsen, chief investment strategist at Leuthold Grup in Minneapolis.
The CBoe Volatility index closed at its highest since August 2015.
Selling hit all S&P sectors, though the S&P financial index , down 5.0 percent, was the biggest daily percentage decliner, followed by healthcare, down 4.6 percent.
"It looks to me like a typical type of scenario when you see a single stock flash crash where you'll see bids just disappear, stop orders get kicked," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey. "The overall market could have taken a cue from some of the bigger names."
The Dow Jones Industrial Average fell 1,175.21 points, or 4.6 percent, to 24,345.75, the S&P 500 lost 113.19 points, or 4.10 percent, to 2,648.94 and the Nasdaq Composite dropped 273.42 points, or 3.78 percent, to 6,967.53.
The pan-European FTSEurofirst 300 index lost 1.51 percent and MSCI's gauge of stocks across the globe shed 2.96 percent.
After rising sharply last week, US Treasury yields fell from 4-year highs on Monday as the selloff in equity markets sparked demand for low risk debt.
Benchmark US 10-year note yields surged to 2.885 percent overnight, the highest since January 2014, following data Friday that showed hourly wages rose in January.
The 10-year notes last rose 38/32 in price to yield 2.7093 percent, down from 2.852 percent late on Friday.
The US dollar rose against a basket of currencies as the US bond market selloff leveled off.
The dollar index rose 0.49 percent, with the euro last up 0.06 percent to $1.2375.
Oil prices settled lower, pressured by rising US output and other factors.
US crude fell 1.99 percent to $64.15 a barrel, while Brent fell 1.4 percent to $67.62.
Spot gold steadied at $1,334.40 an ounce.
source: news.abs-cbn.com
NEW YORK - Wall Street's main stock indexes suffered their worst week in two years as bond yields soared and renewed fears of inflation gripped investors.
But amid the selloff, corporate earnings forecasts keep improving.
Forecasts for earnings, one of the fundamental factors that drives stock prices, are rising fast as analysts factor in benefits from the US tax overhaul.
Optimism over forecasts has caught the attention of anxious investors, who hope that strong earnings can support lofty stock valuations and offset the concerns over rising bond yields and the pace of Federal Reserve rate hikes. Rising interest rates in general mean higher borrowing costs for companies.
This week, fears of higher rates overwhelmed the upbeat profit picture as the benchmark S&P 500 stock index fell 3.9 percent and raised some concern about a deeper pullback.
"This uptick in bond rates has everybody nervous obviously," said Gary Bradshaw, portfolio manager at Hodges Capital Management in Dallas, Texas.
"But we step back and look, and so far earnings have been awful good. Even though you have seen rates move up some here, they are still very low, inflation is still low," he said.
With half of the S&P 500 index companies still to report fourth-quarter results and potentially give guidance on 2018, profit estimates are likely to increase further.
Even after the selloff this week, the S&P 500 is up 3.3 percent for this year and that is on top of a 19.4-percent gain for 2017. Whether this week's downturn in global equity markets continues will depend in part on upcoming earnings reports.
Reports from both Apple and Google parent Alphabet late Thursday disappointed investors, as did Friday's results from ExxonMobil and Chevron, but fourth-quarter S&P 500 company results overall have been much stronger than expected.
Among changes to the tax law, the corporate income tax rate drops to 21 percent from 35 percent, so earnings estimates for the first quarter and all of 2018 have jumped.
First-quarter profit growth for S&P 500 companies is now estimated at 17.7 percent, according to Thomson Reuters data, up from 11.7 percent on Dec. 20, when both houses of Congress approved the tax revamp. Earnings growth for 2018 is now forecast at 18.2 percent, up from 11.5 percent on Dec. 20.
Typically, expectations decline as the earnings reporting season for the quarter approaches. On average, profit growth expectations fall by four percentage points from the start of the quarter to the start of earnings season, said David Aurelio, senior research analyst at Thomson Reuters.
This January, revisions to S&P 500 2018 earnings estimates were 4.3 times more positive than negative, according to Bank of America Merrill Lynch. The one-month ratio of upward to downward revisions was the highest since at least 1986, as far back as the bank's data goes.
All of the S&P 500 companies together are expected to show earnings of about $155 per share this year in aggregate, up about $9 since Dec. 20, Thomson Reuters' estimates show.
The tax reform benefit is estimated to add more than that, however, a full $13, which suggests there "there is more room to run," BofA-ML strategists said in a note.
In addition to the tax law, US companies' earnings are benefiting from improving global economic growth and the weaker US dollar, which helps US multinationals exports sales, said Jill Carey Hall, equity and quant strategist at Bank of America-Merrill Lynch.
Those factors could help to underpin US earnings even after the tax benefit is priced in.
"Stocks may be have been overbought, but some of that was alleviated this week, and global growth and profit growth are still intact," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.
Among companies due to report next week are Walt Disney , General Motors, several biotech companies including Gilead and restaurants including Chipotle Mexican Grill.
source: news.abs-cbn.com
NEW YORK - The S&P 500 and Nasdaq ended at records for the fifth straight session Monday, but the Dow dipped and the 2018 global stocks rally showed signs of petering momentum.
Global stocks were on a tear last week, with Wall Street and key international bourses closing at multi-year or all-time highs amid improving global economic data and optimism about corporate earnings after President Donald Trump signed a big tax cut into law last month.
But the lofty state of the market has started to raise questions about equity valuations, heading into the quarterly earnings season. Gains Monday were generally more modest than last week, and some key markets ended lower.
JPMorgan Chase and Wells Fargo kick off the earnings period for big US corporations on Friday.
"The guidance will be more important than ever," said Art Hogan, chief market strategist at Wunderlich Securities, referring to the corporate statements on expected profit.
Investors so far have not shown much concern about the one-term hit announced by many large companies as they repatriate foreign earnings to the United States, as a result of the recent tax reform.
But sentiment could shift throughout the course of the earnings period, analysts said.
"The question is how are people going to interpret companies that give lower earnings guidance to pay for their taxes," said Phil Davis of PSW Investments. "It is short-term, but you know investors are not very patient."
In the US, the S&P 500 and Nasdaq edged to fresh records, while the Dow fell for the first time in 2018.
Earlier, Asian equities mostly advanced, with Hong Kong chalking up a blistering tenth day of gains.
The positivity spilled over into Europe with London scaling another record pinnacle at 7,733.39 points, before turning lower amid a UK government reshuffle.
Frankfurt and Paris maintained momentum, with equity markets rising modestly as the weaker euro against the dollar boosted exporters.
Frankfurt sentiment was also bolstered by German Chancellor Angela Merkel opening a fresh round of negotiations with the aim of forming a government after last year's inconclusive general election.
"Equities are off their best levels but maintain a northerly bearing," said Mike van Dulken at Accendo Markets.
KEY FIGURES AROUND 2200 GMT (6 a.m. Tuesday in Manila)
New York - DOW: DOWN 0.1 percent at 25,283.00 (close)
New York - S&P 500: UP 0.2 percent at 2,747.71 (close)
New York - Nasdaq: UP 0.3 percent at 7,157.39 (close)
London - FTSE 100: DOWN 0.4 percent at 7,696.51 (close)
Frankfurt - DAX 30: UP 0.4 percent at 13,367.78 (close)
Paris - CAC 40: UP 0.3 percent at 5,487.42 (close)
EURO STOXX 50: UP 0.2 percent at 3,616.45
Hong Kong - Hang Seng: UP 0.3 percent at 30,899.53 (close)
Shanghai - Composite: UP 0.5 percent at 3,409.48 (close)
Tokyo - Nikkei 225: Closed for public holiday
Euro/dollar: DOWN at $1.1967 from $1.2030 late on Friday
Pound/dollar: UP at $1.3567 from $1.3564
Dollar/yen: DOWN 113.08 yen from 113.10 yen
Oil - Brent North Sea: UP 16 cents at $67.78 per barrel
Oil - West Texas Intermediate: UP 29 cents at $61.73 per barrel
source: news.abs-cbn.com
NEW YORK - US stocks retreated Wednesday following a batch of mostly lackluster earnings, while a stronger pound hammered London's FTSE 100.
US stocks have hit numerous records over the last month, boosted in part by good earnings. But disappointing reports Wednesday from AT&T and Boeing, among others, led to declines in both those companies and the broader market.
"Earnings season has been good overall, but we are still seeing some misses," said Gorilla Trades strategist Ken Berman. "Bulls know that a brief pullback might be necessary."
Investors were also rattled by discord among Republicans that could halt progress on President Donald Trump's tax cut plan, a key investor priority.
In a withering address on the Senate floor, Arizona Republican Senator Jeff Flake announced Tuesday he was retiring from the body and lambasted Trump for "reckless, outrageous and undignified behavior."
Earlier, Republican Senator Bob Corker of Tennessee, who is also retiring, called Trump an "utterly untruthful" leader who "debases" the nation.
The strife "creates great anxiety about tax reform," said Tom Hainlin of US Bank's Ascent Private Capital Management.
London's FTSE 100, meanwhile, dropped 1.1 percent after Britain's GDP grew 0.4 percent in the third quarter, slightly outperforming expectations.
The pound, which has been under pressure over suggestions that a hike in interest rates may be delayed, spiked after the positive GDP results, rising against the dollar and the euro.
"Ultimately, a respectable growth rate in the UK economy will assist the equity benchmark in the long run, but for now the pound is putting pressure on it," said David Madden, market analyst at CMC Markets UK.
Eurozone stocks also retreated ahead of the European Central Bank's policy meeting Thursday, at which it is expected to announce a big reduction in its bond-buying stimulus as the eurozone economy picks up.
Frankfurt fell 0.5 percent to drop back below the 13,000 point level, while Paris shed 0.4 percent.
Analysts expect the ECB will slash the volume of corporate and government bonds it buys each month in half -- from 60 billion to 30 billion euros -- but extend the duration of the program while pledging to keep the monetary tap open and interest rates at historic lows for longer, in order to help financial markets adjust.
In Asia, a phenomenal run of 16 straight days of gains finally ended in Tokyo on Wednesday as a late bout of profit-taking saw the Nikkei close in negative territory for the first time this month.
KEY FIGURES AROUND (5 a.m. Thursday in Manila)
New York - DOW: DOWN 0.5 percent at 23,329.46 (close)
New York - S&P 500: DOWN 0.5 percent at 2,557.15 (close)
New York - Nasdaq: DOWN 0.5 percent at 6,563.89 (close)
London - FTSE 100: DOWN 1.1 percent at 7,447.21 points (close)
Frankfurt - DAX 30: DOWN 0.5 percent at 12,953.41 (close)
Paris - CAC 40: DOWN 0.4 percent at 5,374.89 (close)
Madrid - IBEX 35: DOWN 0.5 percent at 10,153 (close)
EURO STOXX 50: DOWN 0.6 at 3,588.49
Tokyo - Nikkei 225: DOWN 0.5 percent at 21,707.62 (close)
Hong Kong - Hang Seng: UP 0.5 percent at 28,302.89 (close)
Shanghai - Composite: UP 0.3 percent at 3,396.90 (close)
Euro/dollar: UP at $1.1813 from $1.1760 at 2100 GMT
Pound/dollar: UP at $1.3257 from $1.3131
Dollar/yen: DOWN at 113.78 yen from 113.93 yen
Oil - West Texas Intermediate: DOWN 29 cents at $52.18 per barrel
Oil - Brent North Sea: UP 11 cents at $58.44 per barrel
source: news.abs-cbn.com
NEW YORK - Wall Street stocks retreated from records Thursday as
investors soured on financial shares following earnings from large
banks.
The pullback in the US came on a mixed day for European equities as investors continued to weigh the murky politics surrounding the Catalan independence movement.
US stocks have been on a tear since President Donald Trump last month unveiled a much-anticipated tax cut plan.
But they fell back Thursday despite better-than-expected earnings from JPMorgan Chase and Citigroup. Both companies fell after the reports, with Citigroup shedding 3.4 percent.
"Considering the overbought nature of the stock market, the market was vulnerable to a negative surprise, or to ... profit taking," said Karl Haeling of LBBW. "You do have to wonder, at what point are we going to get a correction?"
Europe's stock markets held mostly steady as tensions eased over Catalonia.
S&P WARNS ON CATALONIA
Madrid investors, took profits a day after a relief rally to push the Ibex a touch lower in closing trade. Spanish shares had surged Wednesday after Catalan leader Carles Puigdemont called for independence to be suspended to allow for talks with the Spanish government.
Still, ratings agency Standard and Poor's warned that the crisis over Catalan independence from Spain could push the region into recession.
"The tensions between Catalonia and the central government, if unchecked, could lead to a sustained drop in business confidence and potential business disruption," said S&P credit analyst Elena Iparraguirre.
The euro retreated against the dollar, but the pound moved higher against the greenback following a report in German newspaper Handelsblatt that Britain could be given a 2-year extension to complete Brexit due to a deadlocking in negotiations between Britain and the European Union over terms of the divorce.
Oil prices fell after the International Energy Agency warned that more output restraint is needed from OPEC producer countries if the market is to find a sustainable balance.
Among individual equities, HSBC dropped 1.6 percent after announcing that it had chosen John Flint, its head of retail banking and wealth management, to succeed Stuart Gulliver as chief executive, who is retiring.
German airline Lufthansa jumped 1.8 percent as it announced plans to buy more than half the planes of bankrupt Air Berlin. Lufthansa has yet to say how much it will pay under the deal, but Lufthansa chief executive Carsten Spohr told newspaper Rheinische Post that the group would invest 1.5 billion euros ($1.8 billion) in its low-cost subsidiary Eurowings following the takeover.
AT&T sank 6.1 percent as it confirmed many of its full-year financial targets, but said it expects a hit of $210 million in pre-tax earnings in the third quarter due to US hurricanes and earthquakes in Mexico.
AT&T also said it expects a drop of 90,000 in total US video subscribers as more consumers shun traditional cable packages in favor of streaming and other "over-the-top" services.
KEY FIGURES AROUND 2100 GMT (5 a.m. Friday in Manila)
New York - DOW: DOWN 0.1 percent at 22,841.01 (close)
New York - S&P 500: DOWN 0.2 percent at 2,550.93 (close)
New York - Nasdaq: DOWN 0.2 percent at 6,591.51 (close)
London - FTSE 100: UP 0.3 percent at 7,556.24 (close)
Frankfurt - DAX 30: UP 0.1 percent at 12,982.89 (close)
Paris - CAC 40: DOWN less than 0.1 percent at 5,360.81 (close)
Madrid - IBEX 35: DOWN less than 0.1 percent 10,275.90 (close)
EURO STOXX 50: DOWN 0.1 percent at 3,605.54
Tokyo - Nikkei 225: UP 0.4 percent at 20,954.72 (close)
Hong Kong - Hang Seng: UP 0.2 percent at 28,459.03 (close)
Shanghai - Composite: DOWN 0.1 percent at 3,386.10 (close)
Euro/dollar: DOWN at $1.1828 from $1.1864 at 2100 GMT
Pound/dollar: UP at $1.3260 from $1.3225
Dollar/yen: DOWN at 112.29 yen from 112.50 yen
Oil - Brent North Sea: DOWN 69 cents at $56.25 per barrel
Oil - West Texas Intermediate: DOWN 70 cents at $50.60 per barrel
source: news.abs-cbn.com
