- Wall Street hit record close, however momentum fades
- Safe-haven assets rally
- Brent oil trades below $64
European bourses dip lower as momentum fades from the rally on Wall Street on Wednesday. Germany’s DAX 30 is 1% lower and France’s CAC 40 is 0.65% weaker.
Mining stocks are dwindling as commodity prices retreat, dampening sentiment across equity markets.
The euro has added 0.28% to its value as demand for the dollar wanes. The pound was hit by disappointing UK housing data earlier in the session, however rebounded to become 0.18% stronger against the euro and 0.11% higher against the dollar.
The FTSE 100 has fallen 0.4%, weighed down by the robust pound and the wider risk-off attitude in equity markets.
Brexit talks continue to be bearish for the UK economy, as little progress is being made.
Investors are anxious that there may be a delay on US tax reform. The possibility of a reduction in the corporation tax has underpinned the recent rally in equity markets.
Attention remains tightly glued to Donald Trump’s tour of Asia, where the US President holds trade deals and contentious relations with North Korea’s nuclear programme at the top of his agenda.
Trump has brought attention to the US-China trade deal, which he finds are unfair, blaming the White House rather than China for the issues.
The dollar fell back as Trump challenged China over trade. The greenback is now 0.28% lower against a basket of its peers.
The New Zealand dollar gained traction after the central bank noted that an interest rate rise will come sooner than originally anticipated.
Japan’s yen is 0.45% stronger against the dollar as demand for safe-haven assets increases.
As Trump makes his way across Asia, the China A50 is 0.78% higher and the HSI is 0.3% stronger.
Brent oil is 0.1% lower as the commodity oscillates from gains to losses. The international benchmark is at $63.45 as it struggles to maintain above the $64-mark.
Meanwhile, the US benchmark, crude oil, is 0.07% lower, as it sets its sights on $57.
Gold is 0.46% higher as defensive assets climb higher. The precious metal is at its highest point on over three weeks.
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