GLOBAL MARKETS-Stocks lower as Trump impeachment talk swirls; sterling gains after Brexit ruling

Published 24/09/2019, 18:46
Updated 24/09/2019, 18:50
© Reuters.  GLOBAL MARKETS-Stocks lower as Trump impeachment talk swirls; sterling gains after Brexit ruling

* S&P 500 index falls as Trump impeachment rumblings

increase

* Sterling gains on bets court ruling cuts immediate Brexit

* U.S. consumer confidence plunges in September

(Updates with close of European markets; changes byline,

dateline)

By Chuck Mikolajczak

NEW YORK, Sept 24 (Reuters) - A gauge of global stocks fell

on Tuesday as calls for the impeachment of U.S. President Donald

Trump grew louder, while the British pound firmed as the UK

Supreme Court ruled Prime Minister Boris Johnson's decision to

suspend parliament was unlawful.

After initially advancing, Wall Street's benchmark S&P 500

index retreated to session lows after U.S. Representative John

Lewis, one of the most senior leaders, joined other Democratic

lawmakers in calling for impeachment proceedings to begin

against President Donald Trump. The call came after Trump confirmed he held back aid to

Ukraine but denied it was done to provoke an investigation of

Democratic political rival Joe Biden, the former vice president.

Biden was to deliver a statement calling for Trump's impeachment

later on Tuesday.

House of Representatives Speaker Nancy Pelosi, a Democrat,

was to meet later on Tuesday with Democratic lawmakers to

consider opening impeachment proceedings.

"They are taking a huge risk here, as are the Republicans,

digging in on both sides - it is interesting to see how this is

going to play out," said Paul Mendelsohn, chief investment

strategist at Windham Financial Services in Charlotte, Vermont.

"Is it good for the market? – Probably not."

The Dow Jones Industrial Average .DJI fell 189.62 points,

or 0.7%, to 26,760.37, the S&P 500 .SPX lost 27.24 points, or

0.91%, to 2,964.54 and the Nasdaq Composite .IXIC dropped

118.87 points, or 1.47%, to 7,993.59.

The tone of the market had begun to weaken earlier in the

session, with gains evaporating after weak data on U.S. consumer

confidence and a speech by Trump to the United Nations General

Assembly that called on nations to embrace nationalism and turn

their backs on globalism. Trump also issued a message to China

that he will not accept a "bad deal" in trade negotiations.

Markets had been optimistic about the trade tone after U.S.

Treasury Secretary Steven Mnuchin said on Monday that he and

U.S. Trade Representative Robert Lighthizer would meet with

Chinese Vice Premier Liu He for trade talks in two weeks, after

waning optimism on trade had hit the stock market on Friday.

A report showed that U.S. consumer confidence fell by the

most in nine months in September, far more than expected, as

Americans' economic outlooks darkened in the face of the

U.S.-China trade war. Investors have looked to U.S. consumer strength as a reason

to be optimistic about the economy despite signs of weakness in

other areas, such as manufacturing.

European shares closed near flat, as Brexit uncertainty and

the U.S. consumer data helped fan persistent growth worries.

The pan-European STOXX 600 index .STOXX rose 0.01% and

MSCI's gauge of stocks across the globe .MIWD00000PUS shed

0.51%.

Sterling gained after the court ruling against Johnson, but

uncertainty over a possible general election and the eventual

outcome of Britain's impending exit from the European Union

capped its rise. Sterling GBP= was last trading at $1.2472, up 0.35% on the

The dollar index .DXY , which measures the greenback

against a basket of six major currencies, fell 0.22%, with the

euro EUR= up 0.19% to $1.1012. Benchmark 10-year U.S. Treasury notes US10YT=RR last rose

15/32 in price to yield 1.6576%, from 1.708% late on Monday.

Global assets in 2019 http://tmsnrt.rs/2jvdmXl

Global currencies vs. dollar http://tmsnrt.rs/2egbfVh

MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j

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