Sun, 20 Sep 2020

U.S. shares, currency unwanted as oil prices fall

Lola Evans
08 Apr 2020, 07:54 GMT+10

NEW YORK, New York - U.S. stocks gave up early gains to finish slightly in the red on Tuesday.

Potentially good news on the coronavirus, in that health officials are now saying the predicted number of U.S. deaths may not be realised was added to by a fall in oil prices, which while positive for the economies of the world, is negative for oil producers.

"The market sees some hint of good news in terms of the virus. We know we've got the Fed and a lot of stimulus, fiscal stimulus coming," Scott Wren, senior global market strategist at Wells Fargo Investment Institute in St. Louis, Missouri told Reuters Thomson on Tuesday.

"Oil is important because about 20% of the high yield bond market is energy. The energy sector has tens of thousands of high paying jobs and there's a lot of capital expenditure that happens in the sector too," Wren added.

At the close of trading Tuesday, the Dow Jones Industrial Average was down 26.13 points, or 0.12%, at 22,653.86.

The Standard and Poor's 500 eased 4.27 points, or 0.16%, to 2,659.41.

The Nasdaq Composite fell 25.98 points, or 0.33%, to 7,887.26.

The U.S. dollar fell back further after selling began in the Asian session. The euro finished the day in a much stronger position that at the start. Around the finish, the unit was fetching 1.0893. The British Pound was in demand at 1.2336. The Japanese yen was slightly ahead at 108.78.

The Swiss franc rose sharply to 0.9694. The Canadian dollar firmed to 1,3997.

The Australian dollar was up nearly a cent, albeit a little weaker from its Asian close at 0.6173. The New Zealand dollar was stronger at 0.5974.

On overseas equity markets, the FTSE 100 in London closed much higher, gaining 2.13%. The German Dax rose 2.79%, while in Paris, the CAC 40 climbed 2.12%.

On Asian markets, in Japan, the Nikkei 225 rose 373.88 points or 2.01% to 18,950.18.

China's Shanghai Composite climbed 56.78 points or 2.05% to 2,820.76.

In Hong Kong, the Hang Seng jumped 504.17 points or 2.12% to 24,253.29.

The Australian All Ordinaries was the odd man out Tuesday, slipping 22.30 points or 0.42% to 5,301.30.

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