Stocks and dollar slip as Trump cancels summit
US stocks slipped on Thursday led by energy shares. Dow Jones industrial average lost 0.3% to 24811.75. The S&P 500 slid 0.2% to 2720.13 with seven of its 11 main sectors ending lower. The NASDAQ Composite fell less than 0.1% to 7424.43. The dollar weakened: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.2% to 93.736 but is rebounding currently. Stock indices futures indicate higher openings today.
Geopolitical concerns continued to weigh on market sentiment as US President Donald Trump called off the summit that was set to take place June 12 in Singapore after statement by North Korea vice minister of foreign affairs the US could instead face off with North Korea in a “nuclear-to-nuclear showdown” if the talks didn’t go ahead. Economic data were weak: initial jobless claims rose by 11,000 to 234,000 last week, the highest level in seven weeks. And existing home sales were below expectations in April at a seasonally adjusted annual 5.46 million rate.
European stocks slump
European stock indices extended losses on Thursday. Both the euro and British pound turned higher against the dollar but both are falling currently. The Stoxx Europe 600 index lost 0.5%. Germany’s DAX 30 fell 0.9% to 12855.09. France’sCAC 40 slid 0.3% and UK’s FTSE 100 dropped 0.9% to 7716.74. Markets opened 0.2% - 0.4% higher today.
British Pound gained after UK retail sales grew 1.6% over month in April when 0.7% increase was expected. In Italy President Sergio Matarella endorsed 5 Star Movement and League coalition’s proposed candidate professor Giuseppe Conte as prime minister.
Asian stock indices are mixed today despite a conciliatory North Korean response after President Trump cancelled the summit Pyongyang still hoped for a "Trump formula" to resolve the standoff over its nuclear weapons program. {{178|Nikkei} }rose 0.2% to 22482.31 helped by resumed yen slide against the dollar. Chinese stocks are lower: the Shanghai Composite Index is 0.4% lower and Hong Kong’s Hang Seng Index is down 0.7%. Australia’s ASX All Ordinaries is down 0.1% despite Australian dollar slide against the greenback.
Brent slips
Brent futures prices are extending losses today as Russia hinted it may gradually increase output. They ended lower yesterday after the US Energy Information Administration reported Wednesday surprise build of 5.8 million barrels in US crude inventories when a drop was expected. Brent for July settlement closed 1.3% lower at $78.79 a barrel on Thursday.