Wall Street opened lower on Thursday and the Dow lost 100 points as tech stocks pulled back and skepticism over a Republican tax overhaul plan weighed.
A U.S. Senate tax-cut bill, differing from one already in the House of Representatives, was expected to be unveiled on Thursday, complicating a tax overhaul push.
The S&P 500 Index retreated after closing within six points of 2,600, and all major U.S. equity gauges were lower. Banks and small-caps were lower again as tax writers scramble to finalize details of their proposals, while technology shares were among the leading decliners. Volatility spiked as reports out of Washington indicated that Congress could struggle to meet a Dec. 8 deadline to fund government spending.
Asian Markets: Trump in Asia
President Donald Trump’s 11-day Asia tour brought him to Beijing, where he said China is taking advantage of American workers and companies with unfair trade practices, but blamed the problem on his predecessors in the White House.
Japan’s Nikkei index saw a wild 2% swing after hitting its highest since 1992.
The MSCI Asia Pacific Index gained less than 0.1% to the highest in about 10 years. The Japanese yen gained 0.3% to 113.58 per dollar.
European Markets: Main indexes firmly in the red
European equities fell the most since August as basic-resources shares dropped following a decline in industrial-metals prices. Inflation concerns also crept into markets, as the European Commission was the latest authority to raise growth forecasts. Sterling fluctuated as Brexit talks resumed, while oil looked to halt a two-day drop.
The Stoxx Europe 600 Index sank 1.1%, the biggest decrease since July.
The 10-year yield for the Germany and British bonds advanced five and four basis points to 0.378% and 1.26% respectively.
The euro gained 0.3% to $1.1634, the largest gain in a week, whereas the British pound fell less than 0.1% to $1.3111.
JSE weakens amid signs of profit-taking
The JSE turned weaker at lunchtime on Thursday, signalling a drop in the momentum that has carried the all share to a series of record highs over recent weeks.
The local share market has made large gains between June and now, with the all share gaining a hefty 18% during that period, as it played catch-up with other world markets.
The all share was off 0.30% at 59,895.60 points at lunchtime, with all the main indices, apart from property, tracking lower.