Home BUSINESS & ECONOMY CAPITAL MARKET Global Stocks Lose Momentum after Record-breaking Week

Global Stocks Lose Momentum after Record-breaking Week

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Global equity markets were set to end the week stronger on Friday, February 17 after setting record highs in the previous two sessions, rather, the markets closed mixed as investors looked for clarity on U.S. President Donald Trump’s policies on tax and trade.

The MSCI All-Country World index MIWD00000PUS was still headed for its fourth straight week of gains after hitting a record high on Thursday, buoyed by positive signs for global economic growth, but Asian and European markets eased as investors cashed in recent gains.

MSCI’s index of Asia-Pacific shares outside Japan .MIAPJ0000PUS pulled back 0.2 percent, Tokyo stocks closed down 0.6 percent and the pan-European STOXX 600 index was 0.5 percent lower, although it remained near its highest level in 13 months.

European stocks have been boosted by positive earnings surprises. With more than half of the STOXX 600 companies having reported, 55 percent had beaten forecasts.

“As long as the fundamentals and the earnings story continue to carry through, there’s a reason to be invested in these stock markets,” said Nandini Ramakrishnan, global market strategist at JPMorgan Asset Management.

Although the dollar was 0.3 percent firmer on the day, it was hovering near a one-week low against a basket of currencies .DXY and headed for its sixth week of losses in the last eight, as investors awaited substantive market-friendly news from President Donald Trump on tax reform.

The greenback hit a one-month high on Wednesday after U.S. Federal Reserve Chair Janet Yellen supported a near-term rate hike due to signs of robust economic growth.

Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo said the dollar’s recent bounce lacked conviction.

Sterling GBP=D4 fell half a percent to $1.2427 after data showing retail sales in Britain fell 0.3 percent month-on-month last month, against expectations for a 0.9 percent rise.

 

 

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