Stock Rally Fizzles in Europe and Asia
August 23 2017 - 4:01AM
Dow Jones News
By Riva Gold and Ese Erheriene
-- Dow poised to edge lower after best day since April
-- Mexican peso under pressure after Trump comments
-- Media sector leads declines in Europe
A recent rally in global stocks showed signs of stalling
Wednesday while traditional market havens posted a modest
advance.
The Stoxx Europe 600 edged down 0.1% in the early minutes of
trading following its best session in over a week. The media sector
led declines as shares of WPP PLC, the world's largest advertising
company, fell 8% after its revenue growth slowed and it lowered its
forecast for the full year.
Asian shares reversed early gains to end little changed while
futures pointed to small opening declines on Wall Street after the
Dow Jones Industrial Average's biggest daily jump since late
April.
Some analysts attributed Wednesday's muted trading to comments
from U.S. President Donald Trump on Tuesday threatening to shut
down the government to secure funding for a wall on the southwest
border as well as nervousness ahead of a central banking conclave
in Jackson Hole, Wyo., beginning Thursday.
The Mexican peso was down 0.5% against the dollar while market
havens including gold and the Japanese yen drew modest support. The
yield on 10-year Treasurys fell to 2.207% from 2.215% Tuesday.
Yields move inversely to prices.
Still, many investors noted that recent jitters have come in
thin summer trading and U.S. stocks remain close to record highs.
The Dow added nearly 200 points on Tuesday as shares rebounded from
a recent bout of risk aversion triggered by geopolitical concerns
and escalating uncertainty around policy from the White House.
"With valuations elevated here, the market is going to be more
vulnerable to short-term negative news and negative shocks," said
Katie Nixon, chief investment officer at Northern Trust Wealth
Management.
"But unless something really impacts the economy, it's unlikely
that the market impact will be long-lasting," she said, given the
current state of growth and corporate earnings.
Earlier, Japan's Nikkei Stock Average rose as much as 0.9% from
a four-month closing low but pared gains to 0.3% as the yen
rebounded against the dollar.
Australia's stock benchmark shed early gains as losses deepened
among shares of utilities companies. The S&P/ASX 200 was off
0.2%.
The Shanghai Composite Index was down 0.2%, with steel and
precious-metals stocks the biggest decliners amid a 5% pullback in
iron-ore and steel-rebar futures, both of which have rallied in
recent weeks. The country's steel association late Tuesday said it
saw limited room for further price gains. Meanwhile, China's top
prosecutor vowed to intensify a crackdown on financial crimes that
disrupt securities- and futures-market orders.
Trading in Hong Kong was halted as Typhoon Hato passed by the
city.
Yifan Xie contributed to this article.
Write to Riva Gold at riva.gold@wsj.com and Ese Erheriene at
ese.erheriene@wsj.com
(END) Dow Jones Newswires
August 23, 2017 03:46 ET (07:46 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
WPP (NYSE:WPP)
Historical Stock Chart
From Mar 2024 to Apr 2024
WPP (NYSE:WPP)
Historical Stock Chart
From Apr 2023 to Apr 2024