World stocks end strong week on tepid note

Stock markets in Europe and the United States slipped on Friday after several days of gains as investors took a breather in the absence of fresh news on trade talks between Beijing and Washington.

Earlier, Asian markets ended the week mostly on a higher note.

Key European markets were as much as half a percent lower at the close, while Wall Street finished a sleepy session marginally lower.

"US stocks are lower for the first day this week, paring a third-consecutive weekly advance that has come from lingering trade optimism and cooled concerns regarding the Fed making a policy mistake," said analysts at Charles Schwab.

"Equities are slipping amid likely caution ahead of the ramp up of earnings season that coincided with the Q4 market tumult," they said.

But analysts also said that the first full trading week of 2019 showed a solid performance after a tumultuous month of December for equities.

"Despite a lackluster end to the week, 2019 has managed to get off to a decent start despite equity markets finishing 2018 very much on the back foot," said Michael Hewson, chief market analyst at CMC Markets UK.

This week investors have been riding a wave of optimism on signs that China and the United States could eventually reach a trade deal -- but there has been no concrete news yet even though both sides indicated that talks had been productive.

"Traders have yet to hear any further details about the US-China trade talks," said CMC Markets UK analyst David Madden, saying in the meantime markets "appear to be taking a breather."

Sentiment was also boosted this week after Federal Reserve chief Jerome Powell indicated the US central bank would likely slow the pace of interest rate hikes.

Fed minutes Wednesday showed policymakers were happy to hold off any more rate hikes as they assessed the state of the economy, backing up dovish comments last week by Powell.

These positive factors have allowed investors to set aside fears over a global economic slowdown that pummeled markets in December, as well as mounting concerns over a prolonged US government shutdown due to a budget dispute between President Donald Trump and congressional Democrats.

A key catalyst for markets in the coming period will be fourth-quarter earnings period, which begins in earnest with results from JPMorgan Chase and other large banks.

Among individual companies, General Motors surged 7.1 percent after forecasting better-than-expected profits for 2018 and 2019 following the job cuts announced in December.

The outlook also predicted solid sales in both the United States and China, despite trade war uncertainty that has raised uncertainty in both markets.

- Key figures around 2130 GMT -

New York - Dow: DOWN less than 0.1 percent at 23,995.95 (close)

New York - S&P 500: DOWN less than 0.1 percent at 2,596.26 (close)

New York - Nasdaq: DOWN 0.2 percent at 6,971.48 (close)

London - FTSE 100: DOWN 0.4 percent at 6,918.18 (close)

Frankfurt - DAX 30: DOWN 0.3 percent at 10,887.46 (close)

Paris - CAC 40: DOWN 0.5 percent at 4,781.34 (close)

EURO STOXX 50: DOWN 0.2 percent at 3,070.04 (close)

Tokyo - Nikkei 225: UP 1.0 percent at 20,359.70 (close)

Hong Kong - Hang Seng: UP 0.6 percent at 26,667.27 (close)

Shanghai - Composite: UP 0.7 percent at 2,553.83 (close)

Euro/dollar: DOWN at $1.1467 from $1.1500 at 2200 GMT

Dollar/yen: UP at 108.52 yen from 108.43

Pound/dollar: UP at $1.2846 from $1.2747

Oil - Brent Crude: DOWN $1.20 at $60.48 per barrel

Oil - West Texas Intermediate: DOWN $1.00 at $51.59 per barrel



More Related News

Covington Catholic confrontation shows ugly side of Kentucky, and US as a whole
Covington Catholic confrontation shows ugly side of Kentucky, and US as a whole

Whether the Covington Catholic students were right or wrong, the incident in Washington put Kentucky back in the news for all the wrong reasons.

Russia takes wraps off new missile to try to save U.S. nuclear pact
Russia takes wraps off new missile to try to save U.S. nuclear pact
  • World
  • 2019-01-23 16:22:21Z

Washington has threatened to pull out of the 1987 Intermediate-range Nuclear Forces Treaty (INF), alleging that the new Russian missile, the Novator 9M729 (called SSC-8 by NATO), violates the pact, which bans either side from stationing short and intermediate-range, land-based missiles in Europe. Russia

CEOs sour on Trump polices, warn they hurt business, investment
CEOs sour on Trump polices, warn they hurt business, investment

From centre-stage in Davos last year, President Donald Trump told the world's corporate bosses that America is a great place to invest. Foreign direct investment to the United States fell in 2018, and companies gathered at the World Economic Forum in the Swiss Alps this year say they are worried Trump's trade war with China will dampen the global economy and business investments even further. One key complaint here this week: Companies increasingly reliant on consumers in China have had to lower their earnings outlooks as the world's second-largest economy cools.

US aid cuts hit Palestinians, further dimming hope for peace
US aid cuts hit Palestinians, further dimming hope for peace

JERUSALEM (AP) - Tens of thousands of Palestinians are no longer getting food aid or basic health services from America, U.S.-funded infrastructure projects have been halted, and an innovative peace-building program in Jerusalem is scaling back its activities.

U.S. calls on Russia to destroy new missile system
U.S. calls on Russia to destroy new missile system

Robert Wood, U.S. disarmament ambassador, said the system was capable of carrying both conventional and nuclear warheads and represented a "potent and direct threat to Europe and Asia" as it had a range of 500 to 1,500 kilometers (310-620 miles). The United States last week rejected a Russian offer to save the landmark INF treaty that keeps nuclear missiles out of Europe because it could not be properly verified, setting the stage for Washington to withdraw from the pact next month. "Unfortunately, the United States increasingly finds that Russia cannot be trusted to comply with its arms control obligations and that its coercive and malign actions around the globe have increased...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Latin America

Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.