Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

GLOBAL MARKETS-U.S. stocks, dollar fall on FBI Clinton probe

Published 29/10/2016, 05:39 am
© Reuters.  GLOBAL MARKETS-U.S. stocks, dollar fall on FBI Clinton probe
USD/MXN
-
US500
-
DJI
-
DE40
-
LCO
-
CL
-
IXIC
-
DE10YT=RR
-
US10YT=X
-
STOXX
-
FTEU3
-
MIAPJ0000PUS
-
MIWD00000PUS
-
DXY
-

* Healthcare down on earnings reports

* US GDP growth faster than expected; personal consumption slows

* Oil falls on doubts about OPEC's planned output cut (Adds U.S. stocks, dollar fall on Clinton FBI probe; updates throughout)

By Hilary Russ and Chuck Mikolajczak

NEW YORK, Oct 28 (Reuters) - Wall Street fell broadly on Friday, with U.S. stocks and the dollar lower after the Federal Bureau of Investigation said it would probe additional emails related to Democratic presidential candidate Hillary Clinton's use of a personal email server while secretary of state.

The dollar slipped against major currencies, including the Euro and the yen, while the Mexican peso plunged to a three-week low.

"The market turned south the minute the headline hit the tape that the FBI is all of a sudden looking at (Hillary Clinton's) emails again," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.

"The fact they are looking again just raises the prospect that once again they might find something, so the market turned south because it is expecting a Clinton win," he said.

The Dow Jones industrial average .DJI rose 20.04 points, or 0.11 percent, to 18,189.72, while the S&P 500 .SPX lost 4.44 points, or 0.21 percent, to 2,128.6 and the Nasdaq Composite .IXIC dropped 19.76 points, or 0.38 percent, to 5,196.21.

Stocks and government debt yields had been higher, cheered by stronger-than-expected growth in the world's biggest economy that boosted bets on an imminent U.S. interest rate increase, while oil extended losses amid a persisting global glut.

The yield on benchmark 10-year Treasury notes US10YT=RR slipped briefly after the FBI news but later flattened to 1.8486 percent.

Oil prices were set for their biggest weekly losses in six weeks on investor doubts over OPEC's planned output cut and ahead of U.S. rig count data that has steadily increased in the last few months. crude LCOc1 was down 1.04 percent, or 81 cents, at $49.66 a barrel at 2 p.m. ET (1800 GMT), and U.S. crude was 2.05 percent, or $1.01, lower at $48.70 CLc1 .

The U.S. dollar reversed course, dropping 0.57 percent against a basket of major currencies .DXY . It fell 0.68 to 104.61 against the yen after earlier touching a three-month high of 105.50.

The Mexican peso also plunged on the FBI news. The dollar surged about 1 percent against the peso to a three-week high of 19.1002 pesos MXN= .

Earlier in the day, an estimate of U.S. second-quarter gross domestic product showed annualized economic growth of 2.9 percent, the fastest rate in two years. However, the boost came largely from a recovery in inventories and a jump in agricultural exports after poor soy harvests in Argentina and Brazil this year benefited sales by American exporters.

Meanwhile, business investment in equipment contracted for a fourth straight quarter and personal consumption growth slowed to 2.1 percent from 4.3 percent. index of leading 300 shares .FTEU3 closed down 0.35 percent; Germany's DAX slipped by 0.19 percent .GDAXI and the STOXX 600 .STOXX fell 0.27 percent.

MSCI's global stock index reversed, falling 0.12 percent .MIWD00000PUS . Its broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was down 0.36 percent, pressured by the prospect of easy money flows being crimped should the U.S. Federal Reserve tighten policy.

YIELDS CLIMB

In a week marked by deep slides in prices of U.S. and European debt, the benchmark 10-year Treasury yield US10YT=RR climbed earlier on Friday to a five-month high, just below 1.88 percent, helped by surging British gilt and German bund yields DE10YT=TWEB .

Bond yields have risen recently amid concerns the ultra-easy policies of major central banks could have their limits and may not be continued indefinitely.

The robust U.S. GDP data for the third quarter helped pushed Treasury yields higher, with the rates futures markets pricing in a more than 80 percent chance the Federal Reserve would tighten rates at its December policy meeting.

Germany's 10-year bund yield DE10YT=RR earlier rose to 0.219 percent, its highest since early May. It later reversed course, with prices rising and the yield falling to 0.17 percent.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Shanghai CSI 300 and global effects interactive

https://t.co/YqIYLIbInP Chinese A-shares vs developed and emerging stocks

http://link.reuters.com/rac25w

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.