Sun, 20 Sep 2020

Demand for greenback takes focus off stocks

Lola Evans
08 Aug 2020, 08:20 GMT+10

NEW YORK, New York - U.S stocks faltered on Friday despite better-than-expected jobs growth in July, and a rebound in the dollar.

The sell-off was due to profit-taking after the record peaks this week in gold and the tech-driven Nasdaq, and as the value of the dollar ebbed, Axel Merk, president and chief investment officer of Merk Investments LLC in San Francisco told Reuters Thomson Friday.

"We've had such a dramatic move. It's been dollar-centric, call it a profit-taking reversal. I don't think there is a change in environment," Merk told the news agency.

At the close of trading on Friday the Dow Jones industrials were 46.50 points or 0.17% higher at 27,433.48.

The Standard and Poor's 500 was flat, rising just 2.12 points or 0.06% to 3,351.28.

The Nasdaq Composite fell 97.09 points or 0.87% to 11,010.98.

The U.S. dollar rallied Friday, sending the euro down to 1.1788 by the New York close Friday. The Japanese yen slipped to 105.91. The Swiss franc was a fraction lower at 0.9124.

The Canadian dollar was slightly weaker at 1.3383. The Australian dollar, which hit a high of 0.7244 earlier in the day, fell back on profit-taking to 0.7157. The New Zealand dollar was weaker at 0.6601.

In London, the FTSE 100 advanced 0.09%. The German Dax rose 0.66%, while in Paris, the CAC 40 was up 0.09%.

On Asian markets, China's Shanghai Composite, which had posted gains for the previous five trading sessions, dropped 32.43 points or 0.96% to 3,354.94.

In Japan, the Nikkei 225 shed 88.21 points or 0.39% to 22,329.94.

Hong Kong's Hang Seng dived 398.96 points or 1.60% to 24,531.62.

The Australian All Ordinaries declined 35.40 points or 0.57% to 6,104.90.

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