New Year stock rally runs out of steam
The dollar has fallen to an almost three-month low, as mixed signals from US-China trade talks and caution at the Federal Reserve weigh on sentiment
London — The early year rally in world stocks ran out of steam in Europe on Thursday and the dollar dropped to a near three-month low, as mixed signals from US-China trade talks and caution at the Federal Reserve applied the brakes. China said the three days of talks in Beijing had established a “foundation” to resolve the two country’s differences, but gave virtually nothing in the way of details on key issues at stake. A slew of weak data also dampened the mood. Again in China, factory-gate inflation was the slowest in more than two years, while worse-than-expected industrial figures in France provided more proof that Europe is spluttering again. The pan-European Stoxx 600 quickly lost 0.7% as Germany’s trade-sensitive DAX dropped 0.8% and Britain’s heavyweight FTSE 100 fell 0.5% on persistent Brexit concerns. “I am beginning to get a little concerned about the path of the European industrial data,” State Street Global Markets’ head of strategy, Michael Metcalfe, said. “It is rais...
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