Saturday 22 July 2017

Markets fall as euro rises

Markets fell on Friday.

The S&P 500 slipped less than 0.1 percent but the Nikkei 225 fell 0.2 percent and the STOXX Europe 600 tumbled 1.0 percent as the euro hit a two-year high against the US dollar.

“The fear the European Central Bank will discuss the possibility of trimming its bond buying scheme later this year has driven investors to dump their eurozone equities,” said CMC Markets’ markets analyst David Madden. “To make matter worse, the relative strength of the euro is making eurozone stocks more expensive.”

In the US, the market was held back by General Electric, which fell 2.9 percent after reporting a drop in its second-quarter earnings and revenue.

“From an earnings perspective, it’s been kind of mixed so far and there is no earnings tailwind that investors had been expecting,” said Bruce Bittles, chief investment strategist at RW Baird & Co.

Still, Wayne Kaufman, chief market analyst at Phoenix Financial Services noted that “the breadth we saw in the Nasdaq over the rally speaks very well for what can happen down the road”.

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