Stocks flat ahead of G20; dollar slips

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NEW YORK
Global equity markets traded mostly flat on Monday as investors awaited U.S.-China trade talks the end of this week at the G20 summit, and the dollar fell to three-month lows on bets the Federal Reserve may cut interest rates more than once this year. European stocks stumbled on fears of an escalation in Iran tensions, which also kept gold prices near a six-year high. U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other Iranian senior officials with new sanctions on Monday. Earlier in China, shares closed higher on hopes of a thaw in the U.S.- China trade dispute, which has been blamed for slowing global growth. The blue-chip CSI300 index rose 0.2%, and the Shanghai Composite Index also gained 0.2%. Chinese state media said on Sunday that President Xi Jinping will attend the G20 summit in Osaka, Japan, in the first official confirmation of his attendance at a gathering where he is expected to meet with Trump. US stocks rose but held below the record intra-day high set last week. They are unlikely to push much higher without progress on US-China trade or a Fed rate cut, said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey. Until we get that G20 meeting and start to get some feedback from the (Trump) administration, it’s going to be tough to go higher, he said. MSCI’s gauge of stocks across the globe gained 0.07%, while the FTSEurofirst 300 index of leading European shares closed down 0.25% on weak German economic data and a profit warning from Mercedes Benz maker Daimler. German business morale fell in June to its lowest level since November 2014, an Ifo Institute survey showed, adding weight to expectations that Europe’s largest economy contracted in the second quarter. Germany’s DAX index fell 0.53%. On Wall Street, the Dow Jones Industrial Average rose 26.41 points, or 0.1%, to 26,745.54. The S&P 500 lost 2.17 points, or 0.07%, to 2,948.29, and the Nasdaq Composite dropped 16.57 points, or 0.21%, to 8,015.14. The dollar softened against a basket of currencies on bets the Fed may lower rates more than once this year, while U.S.-Iranian tensions provided safe-haven support for the yen.— VoM

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