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Global Markets: Stocks, dollar steady after U.S.-North Korea summit

Reuters  |  NEW YORK 

By Nick Brown

(Reuters) - World stock markets were little changed on Tuesday while the U.S. dollar fell slightly against an index of major currencies, as investors brushed aside a long-awaited U.S.-summit aimed at denuclearizing the

U.S. and North Korean leader Un met in Singapore, pledging to work toward complete denuclearization, while committed to providing security guarantees for its old enemy.

The MSCI all-country world index, which tracks shares in 47 countries, gained 0.07 percent on the day.

The dollar index fell 0.04 percent, steadied in part by data on Tuesday showing U.S. consumer prices rose in May amid a slowdown in the increase of gasoline costs.

The euro was up 0.06 percent to $1.1789.

Investors had mixed reactions to the summit, which ended with the signing of a joint statement that gave few details on how the goals set by both sides would be achieved.

"Any de-escalation is good, because in the background you always have worries about these situations," said Global Investors European

Others felt the sit-down between Trump and Kim did little to change the game.

"Markets are skeptical," said Brad McMillan, for in Waltham, "This is more of a case of 'we'll believe it when we see it', rather than actually reacting."

Buyers of equities and government bonds seemed more interested in other matters. Along with the positive U.S. inflation data, investors were focused on the kick-off of a two-day meeting, at which the Fed is expected to raise interest rates, as well as meetings later this week by the and the

""We're eagerly awaiting the Fed, the ECB and the BOJ, in that order," said Gregory Anderson, at in "People are reluctant to do a whole lot ahead of that."

Futures contracts indicate a 96 percent probability the fed funds rate will be raised a quarter of a percentage point on Wednesday, according to

Benchmark 10-year notes last fell 3/32 in price to yield 2.9663 percent, from 2.957 percent late on Monday.

The 30-year last fell 4/32 in price to yield 3.1032 percent, from 3.097 percent Monday.

Wall Street's main equity indexes were mixed but steady, with the Dow Jones Industrial Average falling 8.78 points, or 0.03 percent, to 25,313.53, the 500 gaining 3.07 points, or 0.11 percent, to 2,785.07 and the adding 28.74 points, or 0.38 percent, to 7,688.66.

drove the jump on the benchmark S&P, gaining 6.25 percent in midday trading after raised its price target by $11 to $50.

jumped more than 4.8 percent after raised its estimates for Model 3 deliveries for the second quarter and full-year.

In Europe, the regional index lost 0.01 percent.

The meets on Thursday, with some expecting it to provide guidance for ending its bond-buying program at the end of this year.

The spread between Italian and German 10-year borrowing costs narrowed as the U.S.-summit drew to a close, following a rally on Monday after reassuring comments from Italy's new minister.

Oil was mixed after falling earlier in the day. Volatility subsided to its lowest in three weeks, as investors prepared for a key meeting of the OPEC group next week.

U.S. crude rose 0.53 percent to $66.45 per barrel and Brent was last at $76.41, down 0.07 percent.

In Asian equity markets, trading was volatile with Japan's Nikkei paring early gains to close 0.3 percent higher after earlier rising as much as 0.9 percent.

(Additional reporting by Ritvik Carvalho, and Karen Brettell; Editing by Bernadette Baum)

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

First Published: Tue, June 12 2018. 21:29 IST
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