Wednesday 15 July, 2020

Global stocks dip after Trump impeachment vote

AP Photo

AP Photo

Global stock markets mostly dipped Thursday after the US House of Representatives voted to impeach President Donald Trump and the central banks of Japan and Britain kept their interest rates low.

The London stock index was up slightly while Frankfurt, London and Shanghai were little changed and Tokyo retreated. Wall Street futures were stable ahead of the open.

The House vote sends Trump's case to the Senate for trial. Republicans who control the Senate say they plan to acquit him.

Trump is accused of abusing his office by pressing the government of Ukraine to investigate a potential political rival ahead of next year's presidential election. He also is accused of obstructing efforts by Congress to investigate that allegation.

The outcome will be “greater polarization, and a rapid Senate dismissal of the charges made in the House, and then even greater polarization,” Rabobank said in a report.

In Europe, London's FTSE 100 was up less than 0.1 per cent at 7,541 and Frankfurt's DAX was down 0.6 per cent at 13,148. France's CAC 40 shed 0.2 per cent to 5,946.

On Wall Street, futures for the benchmark Standard & Poor's 500 index and the Dow Jones Industrial Average were flat.

The S&P closed up Wednesday less than 0.1 per cent while the Dow dropped 0.1 per cent. The Nasdaq composite rose 0.1% to a record.

In Asia, the Shanghai Composite Index closed at 3,017.07 and Tokyo's Nikkei 225 lost 0.3 per cent to 23,864.85. Hong Kong's Hang Seng sank 0.3 per cent to 27,800.49.

Seoul's Kospi was off 2 points at 2,195.56 and Sydney's S&P-ASX 200 lost 0.3 per cent to 6,833.10.

The Bank of Japan left its short-term policy rate unchanged at -0.1% and its target for 10-year government bond yields at 0 per cent. The Bank of England also left its key rate unchanged, at 0.75 per cent, as it monitors the impact of Brexit on the economy.

ENERGY: Benchmark U.S. crude lost 3 cents to $60.90 per barrel in electronic trading on the New York Mercantile Exchange. The contract declined 2 cents on Wednesday to close at $60.85. Brent crude, used to price international oils, shed 7 cents to $66.10 per barrel in London. It added 7 cents the previous session to $66.17.

CURRENCY: The dollar edged down to 109.50 from 109.56 yen the previous day. The euro was steady at $1.1114.

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