Global Stocks Little Changed as Oil Falls -- 2nd Update
August 24 2016 - 7:52AM
Dow Jones News
By Riva Gold
Stocks and the dollar were listless in quiet trade Wednesday, as
investors largely shrugged off a fresh fall in the oil price and
signs of escalating geopolitical tensions.
Futures pointed to a 0.1% opening rise for the S&P 500,
following modest gains in Europe. The WSJ Dollar Index, which
measures the greenback against a basket of 16 currencies, was
flat.
With few major catalysts on the economic calendar, the bulk of
market attention is focused on Friday's Jackson Hole conference,
where U.S. Federal Reserve Chairwoman Janet Yellen is slated to
speak. Any clues on the timing of the next interest rate rise could
steer the dollar and offer fresh direction for markets, analysts
say.
Market volatility has ground to a halt in recent weeks, with
many traders away from their desks for summer holidays. For 32
consecutive sessions, the S&P 500 index hasn't moved more than
1% in either direction, a contrast from last August's
China-triggered volatility.
Upside surprises in economic data have largely dissipated in
recent sessions, but investors continue to bet on easy monetary
policy, on a narrow path.
The yield on the 10-year Treasury note was last at 1.554%,
compared with 1.553% on Tuesday. Treasurys are stuck in the
tightest trading range in a decade, according to London Capital
Group.
Wednesday's quiet session came despite headlines pointing to
escalating geopolitical tensions. North Korea showed signs of
progress in its program to develop nuclear-tipped missiles, and
Turkish and American military forces launched a major offensive in
northwestern Syria as part of a campaign to push Islamic State off
the border. Turkey's ISE National 100 stock-market benchmark shed
1.8%, but markets elsewhere showed little reaction.
European stocks swung between small gains and losses in morning
trade, and were last up 0.4%, as advances in banks and media
companies offset declines in the basic resources sector.
Shares of Glencore PLC were down 5.6%, leading declines in the
sector, after the commodities and mining group released
disappointing first-half results. Glencore shares are still up more
than 70% this year.
Oil and metals prices also both declined, weighing on mining
companies. Brent crude oil was last down 1% at $49.46 a barrel,
reversing Tuesday's gains as reports of additional U.S. crude
stocks overshadowed hopes Iran could agree to a production freeze
accord.
Gold fell 0.4% to $1,341 an ounce, while copper prices dropped
0.5% to $4,683 a ton.
Earlier Wednesday, shares in Asia were mixed. Stocks in Hong
Kong shed 0.8%, weighed by property companies, while Japanese
stocks rose 0.6% as the dollar gained slightly against the yen,
supporting shares of exporters.
The dollar was last down 0.1% against the yen at Yen100.2090,
while the euro was down 0.2% against the dollar at $1.1279.
The South African rand was down 1.4% against the dollar
following media reports the country's finance minister was summoned
to appear before a special police investigative unit. The rand is
now in negative territory for the month.
Write to Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
August 24, 2016 07:37 ET (11:37 GMT)
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