Breaking News

World shares tumble on impatience over Trump policies; euro gains

Stock MarketsMar 21, 2017 12:23PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Traders work on the floor of the NYSE

By Sam Forgione

NEW YORK (Reuters) - U.S. and European shares tumbled on Tuesday on concerns that higher interest rates and pro-growth U.S. policies were on hold, boosting safe-haven Treasuries and gold prices, while the euro hit a more than six-week high against the dollar on soothed French election worries.

The U.S. S&P 500 financial sector (SPSY) fell more than 2 percent and was on track for its biggest daily plunge in two months. Analysts attributed the selling to reduced confidence that U.S. President Donald Trump's pro-growth policies, including financial deregulation, would occur soon, and to concerns of a dovish Federal Reserve.

The Fed stuck to its outlook for two more hikes this year last week, instead of the three expected by many market participants.

The tech-heavy U.S. Nasdaq Composite fell more than 1.3 percent after hitting a record intraday high earlier on the back of Apple (O:AAPL) shares, which briefly touched a record $142.80 a share. Europe's broad FTSEurofirst 300 (FTEU3) stock index also fell after earlier hitting a 15-month high.

"Led by financials and industrials, the stock selloff suggests that investors may be less confident that the Trump administration’s pro-growth announcements will be translated into policy implementation soon," said Mohamed El-Erian, chief economic adviser at Allianz (DE:ALVG) in Newport Beach, California.

MSCI's all-country world equity index (MIWD00000PUS) was last down 1.81 points, or 0.4 percent, at 449.25.

The Dow Jones Industrial Average (DJI) fell 157.17 points, or 0.75 percent, to 20,748.69. The S&P 500 (SPX) lost 18.33 points, or 0.77 percent, to 2,355.14. The Nasdaq Composite (IXIC) dropped 62.08 points, or 1.05 percent, to 5,839.45.

Europe's broad FTSEurofirst 300 index (FTEU3) dropped 0.54 percent to 1,480.27.

The euro <EUR=> hit $1.0819, its highest level against the dollar since Feb. 2. Centrist Emmanuel Macron cemented his position as front-runner in the first televised French presidential debate on Monday versus anti-European Union contender Marine Le Pen.

The euro gained on relief over the debate results, since a win by the far-right Le Pen is seen as posing a risk of euro zone break-up.

"Any news between now and the French election next month that suggests fading risk of a Le Pen victory would probably be supportive of the euro," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

U.S. crude oil prices hit a one-week low of $47.50 a barrel as the market discounted the latest talk by OPEC that it would extend output cuts beyond June.

Brent crude (LCOc1) was last down 31 cents, or 0.6 percent, at $51.31 a barrel. U.S. crude (CLc1) was down 50 cents, or 1.04 percent, at $47.72 per barrel.

Safe-haven spot gold and U.S. Treasuries benefited, with gold hitting a more than two-week high of $1,243.80 an ounce and benchmark 10-year U.S. Treasury yields (US10YT=RR) touching a nearly three-week low of 2.425 percent.

World shares tumble on impatience over Trump policies; euro gains

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email