1. Main
  2. Learn
  3. Economy
  4. Markets

US, EU stocks fall as markets focus on dollar

US, EU stocks fall as markets focus on dollar US, EU stocks fall as markets focus on dollar

US and European stocks drifted lower on Friday while the euro struck a near 12-month low against the dollar on persistent market expectations of US interest rate hike next month, AFP reports.
On Wall Street, the jubilant post-election rally that greeted Donald Trump's victory last week showed signs of fading, with all major indices finishing down 0.2 percent but still up for the week.
Peter Cardillo of First Standard Financial said stocks could be suffering in part due recent events on the currency exchange and bond markets. "I do not expect a major pull back but the Trump rally might be fading due to the strong dollar and higher yields," he said.
The US dollar this week has climbed to its highest level in almost 14 years and major indices remained in near-record territory.

The euro slumped to $1.0569, the lowest level since early December last year. The greenback also reached 110.93 yen, a high since the end of May.
Across the Atlantic, London, Frankfurt and Paris stocks all closed the day with small losses. The Euro Stoxx 50 index fell further, settling down 0.7 percent.
Meanwhile in Asia, Japan's Nikkei index rallied as the dollar surged against the yen, cheering exporters. Elsewhere in Asia, foreign investors removed cash from emerging markets to seek out better US returns, traders said.
Trump and the dollar
The strong dollar weighed on both gold and oil prices. Gold slumped to a near six-month low at $1,202.80 an ounce.
Trump's promises to spend on infrastructure and cut taxes have led to warnings of a surge in inflation that would force the Fed to hike rates to cap prices. This in turn has led to a rush back into the dollar.
"The dollar is once more at the forefront of investors' mindsets, as the incessant rise which has dominated the post-election period continues apace," said Joshua Mahony, market analyst at IG traders.
"In a high-growth environment, it is likely we will see investors moving into the US as a source of capital appreciation.
"However, the hesitancy seen in US stock markets is a clear nod to the fact that with such dollar appreciation comes an environment which is progressively more difficult for US exporters," he added.
Key figures around 2200 GMT 
New York - Dow: DOWN 0.2 percent at 18,867.93 (close)
New York - S&P 500: DOWN 0.2 percent at 2,181.90 (close)
New York - Nasdaq: DOWN 0.2 percent at 5,321.51 (close)
London - FTSE 100: DOWN 0.3 percent at 6,775.77 points (close)
Frankfurt - DAX 30: DOWN 0.2 percent at 10,664.56 (close)
Paris - CAC 40: DOWN 0.5 percent at 4,504.35 (close)
EURO STOXX 50: DOWN 0.7 percent at 3,020.83 (close)
Tokyo - Nikkei 225: UP 0.6 percent at 18,967.41 (close)
Hong Kong - Hang Seng: UP 0.4 percent at 22,344.21 (close)
Shanghai - Composite: DOWN 0.5 percent at 3,192.86 (close)
Euro/dollar: DOWN at $1.0592 from $1.0627 Thursday
Dollar/yen: UP at 110.90 yen from 110.09 yen
Pound/dollar: DOWN at $1.2353 from $1.2418
Oil - West Texas Intermediate: UP 27 cents at $45.69 per barrel
Oil - Brent North Sea: UP 37 cents at $46.86

AFP

Nobel prizewinner proposes a new city in KZ
New abnormal snowfalls expected in Kazakhstan
Huge glacier retreat triggered in 1940s
Hyperloop construction begins in Las Vegas
"Moonlight" to top Spirit Awards nominations
Oil prices fall due to investors uncertainty
New dwarf galaxy discovered around Milky Way
Kanat Islam becomes a top ten WBO boxer
World oil prices continue to rise
Kazakhstan expects warming - Kazhydromet
Merkel to seek fourth term as chancellor
Sale of Tintin drawings set to break records
US, EU stocks fall as markets focus on dollar
Pacific leaders urged to defend free trade
EU warns eight nations on budget deficit
Universiade-2017: Athletic Village is ready
Bob Dylan can't make Nobel ceremony
Messi will never leave Barca - club president
Google, Facebook take aim at 'fake' news
Aerosmith announces Europe 'farewell' tour
Putin, Trump to normalise US-Russia ties
At least 10 hurt in southern Turkey blast
6.2 quake hits western Japan
OPEC agrees shock oil output cut
Israeli ex-president and Nobel laureate Peres dies
Germany blocks WhatsApp data transfers to Facebook
32,000 arrested in Turkey coup probe
Youth to the fore as Milan fashion week opens
Xenophobia threatening peace in eastern Germany
Four-in-10 Japanese are virgins: poll
Sweden re-militarises Baltic island of Gotland
China to launch second space laboratory: Xinhua
More than a billion stars mapped in Milky Way: ESA
Boxing: Golovkin eyes Saunders after stopping Brook
Kazakhstan shifts PM to security chief
Oil prices gain despite rising OPEC supply forecast
US to give Philippines military planes
Singapore wages war on Zika-bearing mosquitoes
Italy quake death toll nears 250
Viral photos add fuel to French burkini debate
18 dead as Italy struck by powerful quake
Japan's first lady visits Pearl Harbor
Pokemon's a no-go on Bangkok's roads
July was Earth's hottest month in modern times
Pakistan rock climbers scale new heights