Stocks Slip As Trump Threatens To Shut Government
Rukhshan Mir (@rukhshanmir) Published August 24, 2017 | 06:35 PM
European and US stocks slid on Wednesday after President Donald Trump suggested he could shut down the US government if Congress did not fund building a Mexico border wall and threatened to pull out of a major trade agreement
LONDON, , (UrduPoint / Pakistan Point News - 24th Aug, 2017 ) - European and US stocks slid on Wednesday after President Donald Trump suggested he could shut down the US government if Congress did not fund building a Mexico border wall and threatened to pull out of a major trade agreement.
Investors also looked ahead to a meeting of central bankers that begins Thursday for insights on monetary policy. Stocks had staged a solid rally Tuesday, in part reflecting optimism that Trump-related controversies were receding and that long-awaited tax overhauls could take centre stage.
But in a speech late in the day Trump vowed to build the border wall even "if we have to close down our government" and to pull out of the NAFTA trade agreement with Canada and Mexico. But market analyst Jasper Lawler at London Capital Group downplayed the risk of a shutdown.
"We think this is basically a bluff by Trump to get his 'Great Wall' back on the agenda and show some political rebellion following his foreign policy capitulation in Afghanistan," he said in a note to clients.
Investors were also looking ahead to getting fresh clues from US Federal Reserve boss Janet Yellen about plans to reduce its huge bond holdings, and from ECB chief Mario Draghi about its cutting back of bond purchases.
"Equity markets in Europe are marginally lower on the day as traders are in wait-and-see mode ahead of the Jackson Hole symposium that starts tomorrow," where both Yellen and Draghi are scheduled to speak, said CMC Markets UK analyst David Madden.
Paris shed 0.3 percent and Frankfurt lost 0.5 percent, while London bucked the trend to end the day flat. The Dow was down 0.2 percent nearing midday. "US stocks are lower in early action following yesterday's solid advance, with global trade concerns and Friday's looming speeches from Fed Chair Yellen and ECB President Draghi likely keeping conviction in check," said analysts at Charles Schwab.
The euro gained against the Dollar following well-received eurozone data, analysts said. "Manufacturing and services PMIs from the eurozone, Germany and France were all very strong and well above the level that separates growth from contraction, suggesting that the recovery is continuing to gain traction," said Craig Erlam, senior market analyst at Oanda trading group.
In London, British advertising giant WPP saw its shares slump nearly 11 percent after the company cut its full-year revenue forecast. "WPP is very much seen as the bellwether of the advertising industry and as such is widely regarded as a global economic barometer and so it is unsurprising the shares have reacted," Graham Spooner, investment research analyst at The Share Centre, said in a note to clients.
Related Topics
Recent Stories
Selection committee dissolved over Pakistan women cricket team's poor performanc ..
Punjab CM Maryam Nawaz in police uniform at Chung police center
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
Today Gold Rate in Pakistan 25 April 2024
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
FM Dar conveys deepest sympathy on torrential rains devastation in UAE
Spain PM Sanchez says weighing resignation after wife's graft probe
Tennis: ATP/WTA Madrid Open results - 1st update
Long-lost Klimt portrait auctioned off for 30 mn euros
More Stories From Business
-
Gold rates up by Rs500 per tola to Rs242,500
27 minutes ago -
Tokyo stocks end lower after Meta results
37 minutes ago -
EXCHANGE RATES FOR CURRENCY NOTES
2 hours ago -
Foreign exchange rates
2 hours ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 25 April 2024
4 hours ago -
Today Gold Rate in Pakistan 25 April 2024
4 hours ago
-
Meta profits soar but costs of AI cause worry
5 hours ago -
Mired in crisis, Boeing reports another loss
13 hours ago -
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
14 hours ago -
British-Pakistani firm unveils $35 million luxury apartments for overseas Pakistanis in Islamabad
14 hours ago -
European stocks lose momentum after global rally
14 hours ago -
New pulses varieties imperative to cater domestic food requirements: Dr Khalid Hasan
15 hours ago