Global stocks fall with U.S. dollar ahead of Trump's speech
By Sinead Carew
NEW YORK (Reuters) - Stocks on major world markets dipped along with the U.S. dollar and U.s. Treasury yields on the last day of the month as investors waited for signals on infrastructure spending and tax cuts in President Donald Trump's Tuesday night Congressional address.
The global MSCI ACWI index .MIWD00000PUS has risen more than 8.0 percent since Trump's election in November on expectations for a pro-business administration but was off 0.1 percent on Tuesday morning in New York as investors worried whether Trump would reveal concrete plans to realize his campaign promises.
Wall Street indexes fell slightly after U.S. fourth-quarter gross domestic product growth was unchanged. Some investors had hoped for an upward revision, according to Scott Colyer, chief executive officer of Advisors Asset Management based in Monument, Colorado.
"The markets are very quiet right now waiting for some specifics on how much the President is going to ask for and how much he and his Congress can deliver, which is another story altogether," said Colyer. "It will be clearer tonight than it is today. At least people are anticipating that."
The Dow Jones Industrial Average .DJI fell 10.35 points, or 0.05 percent, to 20,827.09, the S&P 500 .SPX lost 3.58 points, or 0.15 percent, to 2,366.17 and the Nasdaq Composite .IXIC dropped 23.33 points, or 0.4 percent, to 5,838.57.
In comparison some upbeat company earnings helped in Europe. The FTSEurofirst 300 index .FTEU3 of major companies was up 0.18 percent, snapping a three-day dip and consolidating a 2.6 percent gain for the month. [.EU]
The U.S. dollar .DXY, was down 0.3 percent against a basket of major peers. It rallied to a 14-year high soon after the U.S. election but is down year-to-day in the absence of specific plans on Trump's key promises.
“Markets are a little bit cautious,” said Mark McCormick, North American head of foreign exchange strategy at TD Securities in Toronto. “I think it’s a mix of profit-taking ahead of Trump, and also you have month-end rebalancing flows.” Continued...