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World stocks poised for weekly loss; dollar firms again

Reuters  |  NEW YORK 

By Lewis Krauskopf

(Reuters) - World stocks fell for a third straight day on Friday on pessimism about global economic growth and trade tensions, putting them on track for their first weekly drop this year, while the U.S. dollar was on track for its biggest weekly gain since August.

MSCI's gauge of stocks across the globe shed 0.60 percent on the day, and was set to fall for the week following six consecutive weekly increases.

Investors were digesting economic and trade developments from Thursday, when the sharply cut its forecast for euro zone growth this year and next and said he did not plan to meet with Chinese before a March 1 deadline to achieve a trade deal.

Thursday's trade developments "took off the table what the market was probably starting to price in, which was a resolution by March 1," said Anthony Saglimbene, at in Troy, "It just adds to the fact that investors want some of these trade tensions off the front pages, and it doesn't look like we are going to get that."

Stocks pared some losses after a said U.S.-trade talks would resume next week in

On Wall Street, the fell 155.79 points, or 0.62 percent, to 25,013.74, the S&P 500 lost 9.31 points, or 0.34 percent, to 2,696.74, and the Nasdaq Composite dropped 14.80 points, or 0.2 percent, to 7,273.55.

Adding to the dour mood, analysts now expect first-quarter earnings for S&P 500 companies to decline 0.1 percent from a year earlier, which would be the first such quarterly profit decline since 2016, according to IBES data from Refinitiv.

"The sentiment continues to be investor anxiety about U.S.-trade relations, the slowing global growth, and I think this week what is starting to really creep into investors' anxiety is around corporate earnings," said Michael Arone, at in

The pan-European STOXX 600 index lost 0.56 percent.

The dollar edged higher against a basket of currencies, keeping it on track for its strongest weekly gain in six months, as traders piled into the greenback in a safe-haven move on worries about a weakening global

The dollar index rose 0.14 percent, with the euro down 0.16 percent to $1.1322.

"The rally that propelled the dollar broadly higher last year has enjoyed renewed life with U.S. growth remaining solid while peers abroad lose momentum," said Joe Manimbo, at in

yields fell for a fourth straight session.

Benchmark U.S. 10-year notes last rose 6/32 in price to yield 2.6339 percent, from 2.654 percent late on Thursday.

were little changed on the day, but were heading for a weekly loss on renewed concerns about slowing global demand.

U.S. crude rose 0.15 percent to $52.72 per barrel and Brent was last at $62.07, up 0.71 percent on the day.

(Additional reporting by in and in London; 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: Sat, February 09 2019. 00:47 IST