Global Stocks Mixed Tuesday 10/17 06:01
Global stocks were mixed Tuesday after Wall Street hit new highs, as China
prepared to open a key political meeting.
BEIJING (AP) -- Global stocks were mixed Tuesday after Wall Street hit new
highs, as China prepared to open a key political meeting.
KEEPING SCORE: In early trading, Germany's DAX lost 0.1 percent to 12,987.49
while France's CAC 40 was unchanged at 5,362.06 and London's FTSE 100 held
steady at 7,525.48. On Monday, the CAC 40 gained 0.2 percent and the DAX added
0.1 percent while the FTSE slipped 0.1 percent. On Wall Street, futures for the
Dow Jones industrial average and the Standard & Poor's 500 index were unchanged.
ASIA'S DAY: The Shanghai Composite Index lost 0.2 percent to 3,372.04 while
Tokyo's Nikkei 225 gained 0.4 percent to 21,336.12. Hong Kong's Hang Seng ended
unchanged at 28,697.49 and Sydney's S&P-ASX 200 rose 0.7 percent to 5,889.60.
Seoul's Kospi advanced 0.2 percent to 2,484.37 and India's Sensex was off 0.2
percent at 32,565.54. Benchmarks in New Zealand and Singapore gained while
Taiwan and Bangkok retreated.
WALL STREET: Stocks set records for a sixth straight week. Financial,
technology and energy stocks rose while health care declined. The Dow rose 0.4
percent and the S&P added 0.2 percent. The Nasdaq composite gained 0.3 percent.
CHINA PARTY MEETING: The ruling Communist Party opens a twice-a-decade
congress Wednesday to appoint President Xi Jinping to a second five-year term
as leader. Investors are watching the party's personnel reshuffle for signs of
possible policy directions. After spending his first term firming up his grip
on power, analysts expect Xi to shift focus to economic policy, with an
emphasis on tighter party control of state companies that dominate industries
including banking, energy and telecoms.
FED WATCH: Federal Reserve Chair Janet Yellen will meet with President
Donald Trump on Thursday to discuss the possibility of a second term, a source
familiar with the administration's Fed search told The Associated Press. Trump
has said Yellen, whose term ends Feb. 3, is one of several candidates. Trump
criticized Yellen during his campaign but since taking office has praised her.
The president met with Stanford University economist John Taylor last week, and
interviewed former Fed board member Kevin Warsh and current Fed board member
Jerome Powell last month. Trump has also said economics adviser Gary Cohn is
ANALYST'S QUOTE: Dealers are digesting inflation data "while keeping an eye
on geopolitical risk amidst the deluge of Fed chair speculative headlines,"
Stephen Innes of OANDA said in a report. "Also, it's worth keeping an eye on
the expanding laundry list of geopolitical flashpoints," he said, citing Korea,
Iraq, ISIS and U.S.-Turkish tensions. "The Middle East looks like a powder keg
waiting to explode."
IRAQ TENSIONS: Oil prices rose after Iraqi forces pushed their Kurdish
allies out of the disputed city of Kirkuk, seizing oil fields amid tensions
over last month's Kurdish vote for independence. The Kurds and the Iraqi
central government in Baghdad have long been divided over the sharing of
revenues from the oil fields outside Kirkuk.
ENERGY: Benchmark U.S. crude gained 12 cents to $51.99 per barrel in
electronic trading on the New York Mercantile Exchange. The contract climbed 42
cents on Monday to close at $51.87. Brent crude, used to price international
oils, added 25 cents to $57.82 in London. It rose 65 cents the previous session
CURRENCY: The dollar declined to 112.12 yen from Monday's 112.18. The euro
retreated to $1.1772 from $1.1798.