Global stocks turn lower while oil keeps recovering

AP News
Posted: May 11, 2017 8:20 AM
Global stocks turn lower while oil keeps recovering

SEOUL, South Korea (AP) — Global stocks turned lower Thursday, while oil prices kept recovering from their recent slump and the pound fell after the Bank of England forecast weaker growth in Britain.

KEEPING SCORE: Britain's FTSE shed early gains to trade down 0.1 percent at 7,382 while France's CAC 40 edged down 0.4 percent to 5,380. Germany's DAX fell 0.3 percent to 12,722. Futures augured a weak start on Wall Street. Dow and S&P futures both dipped 0.2 percent.

BREXIT WATCH: The Bank of England trimmed its forecast for British economic growth this year and increased its prediction for inflation, noting that the upcoming Brexit talks are weighing on company investments. Inflation has risen after the pound fell as much as 20 percent after the Brexit vote in June. The pound was down 0.6 percent to $1.2858.

OIL: Energy stocks were supported somewhat by a recovery in the price of crude. Benchmark U.S. oil added 60 cents to $47.93 per barrel in electronic trading on the New York Mercantile Exchange after surging $1.45 on Wednesday. Brent crude, the international standard, also gained 60 cents to $50.82 per barrel in London after closing up $1.49 in the previous session. The price of U.S. crude oil jumped as reports showed U.S. crude stockpiles dropped by 5.2 million barrels last week, bigger than analysts expected.

ASIA'S DAY: Japan's Nikkei 225 rose 0.3 percent to 19,961.55 and South Korea's Kospi jumped 1.2 percent to 2,296.37, its new high. Hong Kong's Hang Seng index advanced 0.4 percent to 25,125.55. Australia's S&P/ASX 200 was up 0.1 percent to 5,878.30. Shanghai Composite Index gained 0.3 percent to 3,061.50. Stocks in Taiwan, Singapore and Southeast Asia were higher.

CURRENCIES: The dollar fell to 113.91 yen from 114.29 yen. The euro edged down to $1.0859 from $1.0868.