Dollar rally stalls, stocks fall on pressure from technology companies

By FinPress Review

Stocks fell in Europe on Wednesday alongside U.S. equity futures as traders juggled doubts about the prospects for progress on trade with signs of China stimulus and moves to end the American government shutdown. The yen slid as the Bank of Japan cut its inflation outlook. The Stoxx Europe 600 Index dropped for a third day as a disappointing sales forecast from the region’s biggest semiconductor maker weighed on technology shares. Bank stocks also fell after Bloomberg reported the Federal Reserve is probing Deutsche Bank amid money-laundering allegations. Futures on the S&P 500 edged lower after yesterday’s tumble, while shares slipped in Japan, rose in Korea and fluctuated in Hong Kong and China. The dollar’s six-day rally stalled and Treasuries were steady.

The yen weakened further against the dollar after the Bank of Japan left its policy unchanged and cut its inflation outlook again. The yuan rose even after the People’s Bank of China offered 258 billion yuan ($38 billion) to banks through its medium-term lending tool, part of efforts to encourage lending to small businesses and bolster growth.

The Stoxx Europe 600 Index declined 0.6 percent as of 8:05 a.m. London time, the biggest drop in almost three weeks. Futures on the S&P 500 Index declined 0.1 percent. The MSCI All-Country World Index fell 0.2 percent to the lowest in a week. The U.K.’s FTSE 100 Index sank 0.7 percent. The MSCI Emerging Market Index decreased 0.2 percent to the lowest in more than a week.

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