World Stocks Mixed Wednesday 01/18 06:06
World stocks were mixed Wednesday following a sharp correction in the dollar
that sapped investor enthusiasm.
HONG KONG (AP) -- World stocks were mixed Wednesday following a sharp
correction in the dollar that sapped investor enthusiasm.
KEEPING SCORE: European shares were uneven in early trading. Germany's DAX
rose 0.1 percent to 11,554.09 and Britain's FTSE 100 climbed 0.2 percent to
7.232.39. France's CAC 40 lost 0.3 percent to 4,846.39. U.S. shares were poised
to open higher. Dow futures added 0.1 percent to 19,762.00 and broader S&P 500
futures gained 0.1 percent to 2,264.60.
DOLLAR'S DIVE: The dollar leveled off a day after slumping against peers
including the yen, euro and pound. One factor behind the currency fluctuations
was British Prime Minister Theresa May's speech about Britain's pending
departure from the European Union, which soothed investors following months of
uncertainty about the plan for an exit following the June vote. Comments by
U.S. President-elect Donald Trump about the dollar being "too strong" and
hurting U.S competitiveness with China also added downward pressure on the
greenback. Trump's comments were published in the Wall Street Journal on Monday
but had little impact until U.S. investors returned to work Tuesday after a
QUOTEWORTHY: Initial investor optimism over Trump's promises to bring in
business-friendly policies has been waning as reality sets in, suggested Jingyi
Pan, market strategist at IG in Singapore. "The market has been anticipating
better clarity into the economic plans of the new administration for months and
weeks, expected to come as President-elect Donald Trump steps into office" on
Friday, said Pan. "Last Wednesday's press conference and the latest set of
comments from ... Trump have probably been a preview for more volatility
instead as the market stands ready to adjust expectations."
ASIA'S DAY: Japan's benchmark Nikkei 225 index recouped early losses to end
0.4 percent higher at 18,894.37 while South Korea's Kospi edged 0.1 percent
lower to 2,070.54. Hong Kong's Hang Seng jumped 1.1 percent to 23,098.26 and
the Shanghai Composite in mainland China added 0.1 percent to 3,113.01.
Australia's S&P/ASX 200 fell 0.4 percent to 5,678.80. Most benchmarks in
Southeast Asia advanced.
HONG KONG HIGHER: The Chinese financial hub's benchmark index surged as
local stocks were poised to benefit from the dollar's weakness via the city's
currency peg to the dollar, which makes shares more attractive for investors
and fund managers using other currencies.
CURRENCY TRADING: The British pound, which surged against the dollar after
May's speech, eased to $1.2312 from $1.2393 in late trading Tuesday. The dollar
edged up to 113.33 yen from 112.79 yen, but is down 1.4 percent for the week so
far against the Japanese currency. The euro slipped to $1.0690 from $1.070.
ENERGY: Benchmark U.S. crude oil rose 18 cents to $52.66 a barrel in
electronic trading on the New York Mercantile Exchange. The contract rose 11
cents, or 0.2 percent, to settle at $52.48 per barrel on Tuesday. Brent crude,
used to price international oils, climbed 20 cents to $55.67.