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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 rose slightly against a basket of major currencies, with only muted impact from the 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 <.MIWD00000PUS>, which tracks shares in 47 countries, shed 0.07 percent in afternoon trading, after modest gains earlier.

The dollar index <.DXY> rose 0.21 percent, steadied in part by data on Tuesday showing U.S. consumer prices increased in May amid a slowdown in the rise of gasoline costs.

The euro was down 0.25 percent to $1.1752.

U.S. crude rose 0.39 percent to settle at $66.36 per barrel, and Brent settled at $75.88, down 0.76 percent, as investors prepared for a key meeting of the OPEC group next week.

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 Ian Ormiston, a with Global Investors European.

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

"Markets are sceptical," 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, with the Fed expected to raise interest rates, as well as policy meetings later this week of 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 /32 in price to yield 2.9571 percent, from 2.957 percent late on Monday.

The 30-year bond last rose 4/32 in price to yield 3.0911 percent, from 3.097 percent Monday.

Wall Street's main equity indexes were mixed but steady, with the Dow Jones Industrial Average <.DJI> falling 26.22 points, or 0.1 percent, to 25,296.09, the <.SPX> gaining 1.82 points, or 0.07 percent, to 2,783.82, and the <.IXIC> adding 30.07 points, or 0.39 percent, to 7,690.00.

pared gains but still traded up about 5 percent after raised its price target by $11 to $50.

Tesla, too, lost some early momentum after the company said it was laying off about 9 percent of its workforce. Even so the shares were up roughly 3 percent after raised its estimates for Model 3 deliveries for the second quarter and full-year. said the job cuts would not endanger the ramp-up of production of the Model 3. [nL4N1TE5HH]

In Europe, the regional index <.FTEU3> lost 0.02 percent.

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

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

(Reporting by Nick Brown; Additional reporting by Ritvik Carvalho, and Karen Brettell; Editing by and Leslie Adler)

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

First Published: Wed, June 13 2018. 01:01 IST
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