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Global Markets: Dollar gains, stocks mostly ease as G7 summit in focus

Reuters  |  NEW YORK 

By Caroline Valetkevitch

NEW YORK (Reuters) - Stocks on global indexes mostly eased while the dollar rose on Friday as expectations that trade tensions will dominate the countries' summit weighed on sentiment.

MSCI's gauge of stocks across the globe shed 0.31 percent. It was still on track, however, to break a three-week streak of losses. U.S. stocks were nearly flat.

Investors were anxious about the summit, kicking off Friday in Quebec, where mounting risks of a tariff war between the and its major trade partners are in the spotlight.

The divide has been widening between U.S. and the group's remaining six members after Trump imposed tariffs on and aluminum imports from Canada, and the last week.

"I suspect that expectations from the have been reduced," said Eric Wiegand, at U.S. Private Wealth Management.

"Expectations have been very modest that there will be much of a productive nature to these meetings."

The pan-European index lost 0.25 percent.

The Dow Jones Industrial Average rose 24.95 points, or 0.1 percent, to 25,266.36, the gained 0.54 point, or 0.02 percent, to 2,770.91 and the dropped 6.82 points, or 0.09 percent, to 7,628.25.

Expectations of more interest rate hikes in the United States, and the prospect that the European Central will soon signal a winding-down of its massive monetary stimulus also contributed to the risk-off tone, investors said.

The Federal Reserve is widely expected to raise U.S. rates next week, its second increase this year, and some investors think it may hint at four rate hikes in 2018 rather than the three that have been widely anticipated.

ECB policymakers meeting on June 14 will debate whether to end bond purchases this year, the bank's said this week. His hawkish message sent the to a three-week top, hit emerging markets, and spurred demand for safe-haven bonds.

An unprecedented U.S.-summit scheduled for June 12 in Singapore, with seeking to pressure into abandoning its nuclear weapons program, is giving investors another reason for caution.

The U.S. dollar rose after a four-day losing streak, while perceived safe-haven currencies such as the yen gained as investors grew cautious.

The dollar index rose 0.18 percent, with the down 0.24 percent to $1.1769.

The Japanese yen, considered a safe haven, strengthened 0.21 percent versus the greenback at 109.47 per dollar.

yields were little changed as traders awaited outcome of the summit.

Benchmark 10-year notes last rose 2/32 in price to yield 2.926 percent, from 2.933 percent late on Thursday.

In the oil market, U.S. crude fell 0.59 percent to $65.56 per barrel and Brent was last at $76.51, down 1.05 percent.

(Additional reporting by and in New York, Ankur Banerjee and Parikshit Mishra in Bengaluru, Ritvik Carvalho, Helen Reid and Sujata Rao in London, Swati Pandey in Sydney and Tomo Uetake in Tokyo; Editing by and James Dalgleish)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 08 2018. 22:10 IST