Global stocks recoup losses, dollar steady as eyes on Trump

AP News
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Posted: Jan 26, 2018 7:42 AM
Global stocks recoup losses, dollar steady as eyes on Trump

SEOUL, South Korea (AP) — Stocks mostly rose Friday, recouping losses from earlier in the week, as the dollar steadied against other currencies. Investors are watching for President Donald Trump's comments later in the day to the World Economic Forum in Davos, Switzerland.

KEEPING SCORE: Britain's FTSE 100 gained 0.4 percent to 7,646 while France's CAC 40 advanced 0.9 percent to 5,529. Germany's DAX added 0.1 percent to 13,308. Futures augured small gains on Wall Street, with Dow futures up 0.2 percent and S&P futures up 0.3 percent.

TRUMP: Investors will also be looking for Trump's speech for how his vision on the U.S. and global economy. He is expected to say that the U.S. is "open for business" and it is unclear whether he will drive home a more nationalist view of "America First" to a crowd of firmly globalist business leaders.

DOLLAR TALK: On Thursday, U.S. Treasury Secretary Steven Mnuchin sought to clarify earlier comments on the desirability of a weak dollar that had precipitated a fall in its value against other major currencies. In the long run, "I fundamentally believe in the strength of the dollar," Mnuchin said. The dollar steadied after that remark and comments by Trump, who said that "ultimately, I want to see a strong dollar."

CURRENCIES: The dollar fell to 109.26 yen from 109.43 yen while the euro strengthened to $1.2443 from $1.2397.

ANALYST'S TAKE: "The plunge in the dollar (down 13 percent since the start of 2017) is basically a monetary easing for the U.S. and will further boost U.S. growth, profits and shares. However, it's working against Fed tightening, increasing the likelihood that it will get more hawkish and U.S. tariff hikes risk driving a stronger, not weaker, U.S. dollar," Shane Oliver of AMP Capital said in a commentary.

ASIA'S DAY: Asian markets finished mostly higher. Japan's Nikkei 225 slipped 0.2 percent to 23,631.88 and South Korea's Kospi rose 0.5 percent to 2,574.76. Hong Kong's Hang Seng index jumped 1.5 percent to 33,154.12 and the Shanghai Composite index added 0.3 percent to 3,558.13. Stocks in Southeast Asia were mixed and Australian markets were closed for a holiday.

DATA WATCH: The U.S. domestic product for the fourth-quarter of 2017 is due to be released Friday and is expected to show continued strong expansion of the world's largest economy.

OIL: Benchmark U.S. crude was up 8 cents to $65.59 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 10 cents on Thursday. Brent crude, used to price international oils, dropped 4 cents to $70.38 per barrel in London.