Global Stocks slip for third day, dollar recovers ground

Thursday, 4 August 2016 00:20 - - {{hitsCtrl.values.hits}}

NEW YORK (Reuters): Global equity prices slipped for a third straight day on Wednesday, pressured by growing nervousness about central bank policy and spiking world bond yields, while the dollar firmed as investors turned their focus to Friday’s U.S. payrolls data.

Oil edged higher on light short-covering after falling to lows last seen in April the previous day.

Global equity prices, weighed down by a sharp drop in Japanese stocks on surging Japanese government bond yields and a strengthening yen, found little support from Wall Street.

MSCI’s world stocks index, which tracks shares in 45 nations, was down 0.37%.

“The central banking issue is more of a factor of everybody trying to stimulate their economies, and how much more can you do?,” said Scott Fullman, chief strategist at Revere Securities LLC.

The recent outbreak of weaker U.S. data has further pushed back expectations for when the Federal Reserve might raise benchmark U.S. interest rates.

UK services sector data on Wednesday showed Britain’s economy is shrinking at the fastest pace since 2009, upping the ante on the Bank of England not to under-deliver at its policy meeting on Thursday.

The recent drop in oil prices and concerns about the strength of European banks, were among some of the other factors that have halted the rally in equity prices, Fullman said.

U.S. stocks were little changed in choppy trading as declines in healthcare and consumer stocks were offset by gains in energy and financials.

The Dow Jones industrial average rose 22.02 points, or 0.12%, to 18,335.79, the S&P 500 gained 2.02 points, or 0.09%, to 2,159.05 and the Nasdaq Composite added 4.78 points, or 0.09%, to 5,142.52.

European stocks were steady as a rebound in the shares of the region’s struggling banks offset weaker auto stocks.

Europe’s broad FTSEurofirst 300 index was up 0.12% at 1,322.84.