NVIDIA launches Jetson Thor robotics computers for physical AI systems
* MSCI world equity index falls 0.3%
* Dollar slips as Jackson Hole meeting gets underway
* U.S. factory sector contracts for first time in a decade
Markit
(Updates prices with U.S. markets, changes comment, dateline;
previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Aug 22 (Reuters) - An index of global stock
markets slipped on Thursday as investors worried about
uncertainty over the outlook for U.S. interest rate cuts even as
weak U.S. manufacturing data raised concerns about the health of
the world's largest economy.
U.S. manufacturing industries recorded their first month of
contraction in almost a decade amid concerns about whether the
U.S.-China trade conflict would tip the economy into a
recession, a private survey showed. "Manufacturing has been pretty weak across the globe for a
while now and we are starting to see that bleed into the U.S.,"
said Joe Mallen, chief investment officer at Helios Quantitative
Research.
Investors' focus, however, remained firmly on Friday's
speech by Federal Reserve Chairman Jerome Powell at a Jackson
Hole, Wyoming, event, which could offer clarity on the direction
of U.S. monetary policy.
The Fed has come under increasing pressure to cut borrowing
costs more, including a call by President Donald Trump on
Wednesday for the Fed to slash its benchmark rate.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 47 countries, was down 0.31%.
On Wall Street, stocks opened higher as strong results from
retailers bolstered confidence in consumer demand. But they
retreated following the dismal U.S. manufacturing data and a
comment from Philadelphia Federal Reserve Bank President Patrick
Harker saying he does not see the case for additional stimulus.
At midday, however, the Dow reversed course, helped by a
3.9% jump in Boeing's BA.N shares after a Reuters report that
the company has told suppliers it will resume production of its
best-selling 737 jets at a rate of 52 aircraft per month in
February 2020. The Dow Jones Industrial Average .DJI rose 44.69 points,
or 0.17%, to 26,247.42, the S&P 500 .SPX lost 4.64 points, or
0.16%, to 2,919.79 and the Nasdaq Composite .IXIC dropped
39.49 points, or 0.49%, to 7,980.72. lost 0.40European shares, which found support from upbeat
surveys on Germany and the euro zone, declined on a report that
the Bundesbank sees no need for German fiscal stimulus right
now. The pan-European STOXX 600 index .STOXX lost
0.40%.
In currency markets, the U.S. dollar weakened as investors
braced for a possible announcement or statement from the Jackson
Hole meeting.
While the Fed's latest minutes showed U.S. policymakers are
reluctant to begin a big rate-cutting cycle in the coming
months, market participants still expect the Fed to signal a
stimulus measure, or an affirmation that the U.S. central bank
is on a steady path to ease interest rates, a scenario viewed as
negative for the dollar.
"Jackson Hole is going to provide an opportunity for the Fed
to correct that communication mistake in the minutes," said
Edward Moya, senior market analyst at OANDA in New York.
The dollar slipped 0.11% against a basket of major
currencies to 98.19. .DXY
Asian currencies suffered after the Chinese yuan fell to an
11-year low against the dollar, indicating trade tension between
the world's two biggest economies remained a major issue.
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Treasury yields, which climbed after better-than-expected
manufacturing data in Europe boosted risk sentiment, pared gains
following dismal U.S. manufacturing data.
Benchmark 10-year notes US10T=RR were down 5/32 in price
to yield 1.5927%, up from 1.577% late on Wednesday.
Oil prices weakened as worries about the global economy
weighed. Brent crude LCOc1 fell 0.49 cents to $59.81 a barrel,
while U.S. West Texas Intermediate crude CLc1 fell 0.43 cents
to $55.25.
Gold prices were little changed on the day as investors
awaited the outcome of the Jackson Hole meeting.
Composite Euro area PMIs rise https://tmsnrt.rs/2Z9i5mz
Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
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