Wall St rises as market takes a relook at ECB chief's comments

Jun 29, 2017, 15:30
Wall St rises as market takes a relook at ECB chief's comments

In currency markets, the dollar was down 0.1% versus the pound at 0.7798 and 0.3% lower against the euro at 0.8794 as the single currency was lifted by comments from European Central Bank chief Mario Draghi on Tuesday suggesting that the Bank would slow down or even withdraw economic stimulus.

U.S. stocks accelerated their losses after Senate Republican leader Mitch McConnell made a decision to put off a planned vote on a bill to dismantle the Affordable Care Act until after the Senate's July 4 recess, to get more time to garner sufficient votes for its passage.

"European currencies have surged, led by Euro on hawkish comments by ECB president Draghi, while the NZD has underperformed", said Jason Wong, currency strategist at Bank of New Zealand, in a note. Yields on 10-year Treasury debt also fell on June 14.

In Asia overnight, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.4 percent as it pulled back from a two-year high hit on Monday.

The tech sector, which has been under pressure recently due to lofty valuations, was up 0.81 percent. The GBP/EUR rate has hit lows of 1.1260 this morning, while the Euro traded through 1.1350 versus the Dollar, as Draghi suggested there is room for the European Central Bank to move away from an ultra-accommodative monetary policy.

The healthcare legislation, which has encountered resistance from several Republicans, is the first plank of President Donald Trump's domestic policy agenda, with investors eager for him to move onto his other plans, including tax cuts, infrastructure spending and deregulation.

Speaking in London, Federal Reserve Chair Janet Yellen did little to suggest USA policy makers have altered plans for a third interest rate hike later this year, saying "it will be appropriate to the attainment of our goals to raise interest rates very gradually".

Ballet, pop stars & folk dances as Russian Federation welcomes FIFA Confederations Cup
Germany face Copa America title-holders Chile, 2015 Asian Cup champions Australia, and this year's Africa Cup of Nations winners Cameroon in Group B.

EC issues notification for President's election
Earlier, the notification for the Presidential elections has been released by the Election Commission of India. A candidate needs to secure a certain quota of votes which is 50 percent of the valid votes polled +1.

Airport incident will be probed, says Raju
Raju has, however, refuted the allegations and said he will ensure that lawful outcomes follow. Earlier in the day, Raju refuted reports that he helped Reddy from getting a boarding pass.

That provoked the banking world's single biggest cheerleaders for a stronger dollar, Deutsche Bank, to abandon calls for a stronger USA currency and instead call the end to a dollar rally dating back to 2014.

Michael Cloherty, a strategist at RBC Capital Markets, said: "Even when it is market specific news to Europe, it affects pricing in the USA". "Yet the currency soon received a second wind, hitting a 12-month high against the U.S. dollar following news that the Republicans had pushed back the Senate healthcare vote due to intra-party opposition", he added.

The U.S. dollar fell to 0.9601 Swiss franc from 0.9717 Swiss franc, and it edged down to 1.3174 Canadian dollars from 1.3245 Canadian dollars.

The Dow slid as declines in shares of Verizon and those of Microsoft, recently down 1.7 per cent and 1.3 per cent respectively, outweighed gains in shares of JPMorgan Chase and those of Home Depot, recently up 1.3 per cent and 1 per cent respectively. It was at $1.1324 recently, down 0.1% on the day.

The 30-year bond last fell 21/32 in price to yield 2.7743 percent, from 2.744 percent on Tuesday.

Spot gold XAU= added 0.5 percent to $1,250.04 an ounce.

General Mills rose 1.6 percent to $56.46 after the Cheerios maker's quarterly profit beat estimates.

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