Friday 28 April 2017

Trump's lack of clarity halts stock rally

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

US stock moved off their session lows around midday on Thursday, but were still set for their worst day this year as the lack of details on economic policy in Donald Trump's speech hit investor optimism and winded a post-election rally.

The losses were broad-based. All but three of the 30 components were lower, while 10 of the 11 major S&P 500 sectors declined.

"Some wind has been taken out of the reflation trade, at least for the short term," said Jeff Zipper, managing director at the Private Client Reserve, US Bank in Florida. "There is a high probability of more volatility if his agenda does not go through or may take longer than he expects."

At one point, the Dow and the S&P were set for their biggest one-day percentage loss since October. Despite the minor recovery, the Dow has further retreated from the 20,000-point mark, while the Nasdaq is set to snap a four-session streak of closing at record highs. The technology , financial and industrial sectors all tumbled more than 1pc.

Microsoft fell 1.8pc and Apple dropped 0.9pc, making them the biggest drags on the S&P and the Nasdaq.

Shares in motor giant Fiat Chrysler plummeted after the US Environmental Protection Agency accused the company of illegally using hidden software that allowed significant excess diesel emissions, the result of a probe that stemmed from regulators' investigation of rival Volkswagen.

In Dublin, the ISEQ overall index of Irish shares was down 0.2pc, or 13.16 points to close at 6,605.19. On European markets, the FTSE 100 bucked downward trends across the continent with gains of 0.4pc. In Paris, the CAC fell by 0.15pc, while in Germany the DAX traded down 0.8pc.

Reuters

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