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The Breakfast Briefing: Global Stocks Decline As Violence Erupts In Kashmir
FYI: Global stocks fell on Wednesday as a violent confrontation escalated between India and Pakistan, even after Federal Reserve Chairman Jerome Powell affirmed a wait-and-see approach to interest-rate changes.
The Stoxx Europe 600 shed 0.5% in the opening minutes of trading. U.S. futures pointed to opening losses of 0.2% both for the Dow Jones Industrial Average and the S&P 500.
In Asia, major indexes bucked a positive trend seen earlier in the day following reports that the Pakistani military shot down two Indian aircraft that had entered its airspace over the contested region of Kashmir and arrested one Indian pilot. The Indian military didn’t immediately comment.
Japan’s Nikkei 225 rose 0.5%, while Hong Kong’s Hang Seng shed 0.2% after gaining 0.8% earlier in the session.
The U.K.’s FTSE 100 was down 0.4% and the British pound gained 0.1% against the U.S. dollar. The market moves suggested investors were growing increasingly confident that a no-deal Brexit was less likely after British Prime Minister Theresa May decided late Tuesday to allow members of parliament to delay Brexit if a departure deal isn’t agreed.
Brent crude traded 0.4% higher at $65.50 a barrel. Giovanni Staunovo, a commodity analyst at UBS, said investors will be paying attention to the U.S. oil inventory report later in the day.
The WSJ Dollar Index, which measures the greenback against a basket of 16 of its peers, was down 0.1%.
Yields for 10-year U.S. Treasurys were flat at 2.64%. Yields move inversely to prices. Gold was up 0.1% at $1,329.10 an ounce. Regards, Ted
