London (AFP) – Major stock markets mostly dropped Wednesday after a mixed bag of economic data and corporate reports, while bitcoin traded close to its record high with eyes on the upcoming US presidential election. The three main US stock indexes were slightly lower after opening, while key European markets were down more sharply in mid-afternoon trading.
“Investors are in no mood to increase their exposure to equity markets, given the lack of a clear lead from the US where consolidation seems to be the order of the day,” said David Morrison, analyst at Trade Nation. Google-parent Alphabet was up almost six percent after reporting positive results after Tuesday’s close, but that was outweighed by negative results from tech company AMD, down almost nine percent, and drugmaker Eli Lilly, down more than 13 percent. Microsoft and Facebook-parent Meta report later Wednesday.
On the economic front, the US economy grew at a healthy 2.8 percent annual rate in the third quarter, even if it undershot analyst expectations and was a slight slowdown from the previous quarter. On Thursday, the Federal Reserve’s favorite inflation measure will be released, while the monthly labor jobs report comes Friday. The eurozone economy grew a better-than-expected 0.4 percent in the third quarter, the bloc reported Wednesday. But the growth spurt may have been the result of one-off factors such as the Olympics, and next quarter’s report may not be so rosy, said Fawad Razaqzada, analyst at City Index.
“Recent forward-looking surveys have been far from great, suggesting that the eurozone economy remained sluggish at the start of Q4,” he said. Outside the eurozone, London’s stock market dropped, though less than Paris and Frankfurt, as the UK’s new Labour government said it would raise taxes by 40 billion pounds and that the deficit will shrink next year.
Asia’s top indices closed mostly down, while in foreign exchange the dollar was mixed against main rivals. Bitcoin steadied, a day after striking just shy of its all-time peak of $73,797.98 achieved in March. A recent surge in the price of bitcoin is seen as a bet on a Republican victory in next week’s US vote, as Donald Trump has emerged as the pro-crypto candidate. The outcome at the polls remains uncertain for many analysts, however, helping haven investment gold to a fresh record high of $2,789.86 an ounce Wednesday.
Oil prices rebounded as volatility dominates crude trading amid twists and turns in the Middle East crisis, and concerns about whether there will be takers for an expected increase in production next year. “It seems as if oil prices are ignoring improving economic data in the US and stimulus efforts from China to revive its struggling economy,” said Daniela Sabin Hathorn, senior market analyst at Capital.com.
– Key figures around 1345 GMT –
New York – Dow: DOWN less than 0.1 percent at 42,219.45 points
New York – S&P 500: DOWN 0.2 percent at 5,823.89
New York – Nasdaq Composite: DOWN 0.2 percent at 18,871.59
London – FTSE 100: DOWN 0.4 percent at 8,186.78
Paris – CAC 40: DOWN 1.4 percent at 7,404.89
Frankfurt – DAX: DOWN 1.2 at 19,254.09
Tokyo – Nikkei 225: UP 1.0 percent at 39,277.39 (close)
Hong Kong – Hang Seng Index: DOWN 1.6 percent at 20,380.64 (close)
Shanghai – Composite: DOWN 0.6 percent at 3,266.24 (close)
Euro/dollar: UP at $1.0830 from $1.0816 on Tuesday
Pound/dollar: DOWN at $1.2971 from $1.3010
Dollar/yen: DOWN at 153.10 yen from 153.57 yen
Euro/pound: UP at 83.51 pence from 83.13 pence
Brent North Sea Crude: UP 1.5 percent at $72.15 per barrel
West Texas Intermediate: UP 1.4 percent at $68.15 per barrel
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© 2024 AFP
