A key index of global equity markets edged lower from near-record highs on Friday after underwhelming corporate earnings and US economic growth data gave investors reason to pause following the recent sharp rally in equity prices.
MSCI’s world index, which tracks shares in 46 countries, was down 0.03 percent and about 2 percent off its record high hit in April 2015. Weakness in Europe weighed on the index and it found little support on Wall Street.
Chevron Corp shares closed down 2.4 percent after its quarterly profit fell short of analysts’ expectations. It was the biggest drag on the S&P 500 and the Dow Jones Industrial Average indices.
The Dow Jones fell 7.13 points, or 0.04 percent, to finish at 20,093.78, the S&P 500 lost 1.99 points, or 0.09 percent, to end at 2,294.69 and the NASDAQ Composite added 5.61 points, or 0.1 percent, to close at 5,660.78.
Europe’s broad FTSEurofirst 300 index closed down 0.29 percent at 1,446.93.
Across Asia, most bourses rose again, with Tokyo boosted by a plunging yen, although traders remain nervous about the outlook for global trade with US President Donald Trump in the White House.
On Friday, Tokyo rose 0.3 percent, Sydney ended 0.8 percent higher, Singapore gained 0.4 percent and Hong Kong ended down 0.1 percent after a four-day rally. Activity was thin heading into the Lunar New Year break, while Taipei, Shanghai and Seoul were already closed.
The US dollar shrugged off disappointing US fourth-quarter GDP growth numbers to extend its rally against a basket of currencies, and US Treasury debt yields slipped as the data spurred buying of government debt.
The greenback rose to a one-week high of 115.37 against the yen, while the Mexican peso, which slumped on Thursday after the White House said Trump wants a 20 percent tax on imports from Mexico to pay for a border wall, strengthened more than 1 percent after the two countries agreed not to talk publicly for now about payment for the wall.
US Treasury yields fell as investors reached for government debt following the disappointing fourth-quarter GDP data.
The benchmark 10-year Treasury note’s yield was down 2 basis points at 2.484 percent.
Oil prices extended losses after data suggested drilling is ramping up in the US, easing the focus on efforts by OPEC and other producers to support prices by cutting supplies.
Brent crude settled down 72 cents, or 1.3 percent, at US$55.52 a barrel, and US crude settled down 61 cents, or 1.1 percent, at US$53.17.
Additional reporting by AFP
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