World Markets Mixed Tuesday 07/17 05:55
World markets were mixed Tuesday in narrow trading as investors awaited
Federal Reserve Chairman Jerome Powell's testimony to Congress.
SINGAPORE (AP) -- World markets were mixed Tuesday in narrow trading as
investors awaited Federal Reserve Chairman Jerome Powell's testimony to
KEEPING SCORE: Germany's DAX rose 0.1 percent to 12,572.62 and the CAC 40 in
France was barely changed at 5,411.39. The FTSE 100 index remained almost flat
at 7,599.96. U.S. stocks were poised for a flat opening ahead of the release of
industrial production figures. Dow futures were less than 0.1 percent higher at
25,045.00. The broader S&P 500 future contract was less than 0.1 percent lower
ASIA'S DAY: Most Asian indexes closed lower as tensions over U.S. trade
actions rattled investors. Japan's benchmark Nikkei 225 bucked the regional
trend, gaining 0.4 percent to 22,697.36 after reopening from a public holiday.
South Korea's Kospi lost 0.2 percent to 2,297.92 and Hong Kong's Hang Seng shed
1.3 percent to 28,181.68. The Shanghai Composite index dropped 0.6 percent to
2,798.13. Australia's S&P/ASX 200 gave up 0.6 percent to 6,203.60. Shares fell
in Taiwan while Southeast Asian indexes were mixed.
FED COMMENT: Investors are watching for guidance on monetary policy and the
economic outlook from the Federal Reserve chair's semi-annual monetary report
to Congress. The Fed said Friday it expects low unemployment and rising
inflation will keep it on track to raise interest rates at a gradual pace over
the next two years.
EU-JAPAN DEAL: The European Union and Japan were to sign a widespread trade
deal Tuesday that will eliminate nearly all tariffs, seemingly defying the
worries about trade tensions set off by President Donald Trump's policies. The
deal covers a third of the global economy and more than 600 million people.
Prices of European wine and pork will fall for Japanese consumers. Japanese
machinery parts, tea and fish will get cheaper for Europe. The major step
toward liberalizing trade has been discussed since 2013 and was largely
finalized last year.
NETFLIX: Video streaming service Netflix's report that it is adding
subscribers at a slower pace than envisioned, renewed fears that its growth may
sputter as competition heats up. Monday's numbers marked the first time in a
more than a year that Netflix hadn't exceeded its subscriber growth projection
and its shares plunged 13.2 percent in aftermarket trading.
ANALYST VIEWPOINT: "The thud was heard up and down Wall Street as Netflix
fell off a cliff in late trading after posting dispiriting subscriber growth
last quarter," Stephen Innes of OANDA said in a commentary. He added, "This
negative Netflix result could spur more moves into to cash as investors may
finally adopt a delayed sell in May and go away strategy."
ENERGY: Benchmark U.S. crude fell 8 cents to $67.98 per barrel in electronic
trading on the New York Mercantile Exchange. The contract fell 4.2 percent to
$68.06 in New York on Monday. Brent crude, used to price international oils,
gained 2 cents to $71.86 per barrel.
CURRENCIES: The dollar rose to 112.36 yen from 112.30 yen late Monday. The
euro ticked up to $1.1736 from $1.1713.