Wed, 17 Jul 2019

Profit-taking and Iran War-fears hit Wall Street

Lola Evans
22 Jun 2019, 09:21 GMT+10

NEW YORK, New York - After rallying for much of the week, U.S. stocks fell back on Friday despite some positive news on the horizon.

Next weekend will see the long-awaited and much-vauntedTrump-Xi meeting at the G20 which takes place on Friday and Saturday.

Meantime Central banks in the U.S. and Europe have both signalled they are ready to take action to ignite growth and inflation.

On the downside there are fears of war breaking out between the U.S. and Iran with tensions rising, and news of an aborted attack on Iranian assets which was planned in retaliation for Iran shooting down a U.S. spy drone either near or in Iranian air space. President Trump on Friday said he called the strike off ten minutes before it was due to take place because the estimates were up to 150 people could be killed, which he said he believed would amount to a disproportionate response.

The euro on Friday, despite the dovish tone of the ECB soared to finish the New York session around 1.1369.

The British pound too shot higher, confirming a recent uptrend as the policitical uncertainty of recent weeks seems to be abating, with Boris Johnson firming as being likely to be the new leader of the Conservative Party and prime minister.

At the close of trading on Friday the Dow Jones industrials were down 34.04 points or 0.13% at 26,719.13.

The Standard and Poor's 500 fell 3.72 points or 0.13% to 26,719.13.

The Nasdaq Composite dropped 19.63 points or 0.24% to 8,031.71.

The Nasdaq was weighed down by a sharp 2.2% drop in payment gateway company Pal Pal, which fell on news of the resignation of COO Bill Ready.

The euro finished the day Friday in New York around 1.1369. The British pound was last quoted at 1.2743.

The Japanese yen rose to 107.31, while the Swiss franc firmed to 0.9764.

The Canadian dollar was little changed at 1.3220. The Australian dollar climbed a few basis points to 0.6926, as did the New Zealand dollar to 0.6588.

In the UK and Europe, and most of Asia stocks also weakened.

In London the FTSE 100 declined by 0.23%. Both the German Dax and the Paris-based CAC 40 were down 0.13%.

In Asian markets, the Nikkei 225 in Tokyo fell 204.22 points or 0.95% to 21,258.64.

In China, the Shanghai Composite rose 14.86 points or 0.50% to 3,001.98.

In Hong Kong, the Hang Seng slid 76.72 points or 0.27% to 28,473.71.

The Australian All Oridinaries dropped 33.60 points or 0.50% to 6,734.50.

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