Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

GLOBAL MARKETS-Euro weakens on cautious ECB; stocks edge up as tariff plan looms

Published 09/03/2018, 06:26 am
Updated 09/03/2018, 06:30 am
© Reuters.  GLOBAL MARKETS-Euro weakens on cautious ECB; stocks edge up as tariff plan looms

(Updates with afternoon trading)

* Euro falls as ECB's president rings cautious note

* Hopes of milder U.S. tariffs support market sentiment

* Wall Street treads water ahead of tariff announcement

* Oil slumps as rising U.S. supply weighs

By Lewis Krauskopf

NEW YORK, March 8 (Reuters) - The euro dropped on Thursday as the European Central Bank signalled caution on inflation and protectionism, while a gauge of global stocks edged higher as investors awaited more clarity on U.S. President Donald Trump's plan to impose import tariffs.

While the ECB took a small step toward weaning the euro zone economy off protracted stimulus by dropping its easing bias, ECB President Mario Draghi said monetary policy would remain "reactive" and that underlying inflation was subdued. euro EUR= was down 0.81 percent to $1.2311, while the dollar index .DXY rose 0.58 percent.

"They toned down the easing bias but there is still a willingness to ease and the tone of Draghi's comments was still dovish, stressing that there is still not a convincing uptrend in inflation," said Chris Scicluna, head of economic research at Daiwa Capital Markets.

Draghi also addressed the U.S. tariff plans, saying: "If you put tariffs against (those) who are your allies, one wonders who the enemies are."

MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.11 percent as the pan-European FTSEurofirst 300 index .FTEU3 rose 1.02 percent.

Wall Street indexes were little changed ahead of White House announcement about the tariffs. Earlier, Trump said he was willing to strike a deal that could exempt Canada and Mexico from the tariffs. has been in the past, what President Trump says and what finally actually materializes are two different things," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"It might be just wise to sit on the sidelines before we get some more clarity."

The Dow Jones Industrial Average .DJI fell 75.2 points, or 0.3 percent, to 24,726.16, the S&P 500 .SPX lost 2.68 points, or 0.10 percent, to 2,724.12 and the Nasdaq Composite .IXIC dropped 1.99 points, or 0.03 percent, to 7,394.66.

Markets have been roiled over the past week by Trump's plans to impose a 25 percent tariff on steel imports and 10 percent on aluminum that have sparked fears of a global trade war.

“It's a news environment where people aren't really sure what is going to happen," said Willie Delwiche, investment strategist at Baird in Milwaukee.

"That's the big thing that's different this year versus last year: you're seeing more of this volatility as people try to sort out some new regimes that are out there,” Delwiche said.

The U.S. healthcare sector was rattled as health insurer Cigna Corp (NYSE:CI) CI.N said it would buy pharmacy benefits manager Express Scripts Holding Co ESRX.O for about $54 billion. Express Scripts shares jumped 8.6 percent while Cigna dropped 10.9 percent. 10-year notes US10YT=RR last rose 6/32 in price to yield 2.8607 percent, from 2.883 percent late on Wednesday.

Oil prices fell and were setting up for a second consecutive weekly drop as the dollar strengthened and concerns over rising U.S. crude production continued to mount on signs of an inventory build at a key U.S. storage hub. crude CLcv1 fell 1.73 percent to $60.09 per barrel and Brent LCOcv1 was at $63.50, down 1.31 percent.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Spot gold XAU= dropped 0.3 percent to $1,321.56 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ MSCI, Nikkei datastream chart

http://reut.rs/2sSBRiD Global stock indexes in 2018

http://reut.rs/2Davlrk

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

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.