EGX ends week in green area on 23 Oct.    Egypt's Curative Organisation, VACSERA sign deal to boost health, vaccine cooperation    Egypt, EU sign €75m deal to boost local socio-economic reforms, services    Egypt, EU sign €4b deal for second phase of macro-financial assistance    Egypt's East Port Said receives Qatari aid shipments for Gaza    Egypt joins EU's €95b Horizon Europe research, innovation programme    Oil prices jump 3% on Thursday    Egypt steps up oversight of medical supplies in North Sinai    Egypt to issue commemorative coins ahead of Grand Egyptian Museum opening    Suez Canal signs $2bn first-phase deal to build petrochemical complex in Ain Sokhna    Inaugural EU-Egypt summit focuses on investment, Gaza and migration    Egypt, Sudan discuss boosting health cooperation, supporting Sudan's medical system    Omar Hisham announces launch of Egyptian junior and ladies' golf with 100 players from 15 nations    Egypt records 18 new oil, gas discoveries since July; 13 integrated into production map: Petroleum Minister    Defying US tariffs, China's industrial heartland shows resilience    Pakistan, Afghanistan ceasefire holds as focus shifts to Istanbul talks    Egypt's non-oil exports jump 21% to $36.6bn in 9M 2025: El-Khatib    Egypt, France agree to boost humanitarian aid, rebuild Gaza's health sector    Egyptian junior and ladies' golf open to be held in New Giza, offers EGP 1m in prizes    The Survivors of Nothingness — Part Two    Health Minister reviews readiness of Minya for rollout of universal health insurance    Egypt's PM reviews efforts to remove Nile River encroachments    Egypt launches official website for Grand Egyptian Museum ahead of November opening    The Survivors of Nothingness — Episode (I)    Al-Sisi: Cairo to host Gaza reconstruction conference in November    Egypt successfully hosts Egyptian Amateur Open golf championship with 19-nation turnout    Egypt will never relinquish historical Nile water rights, PM says    Al Ismaelia launches award-winning 'TamaraHaus' in Downtown Cairo revival    Al-Sisi, Burhan discuss efforts to end Sudan war, address Nile Dam dispute in Cairo talks    Egypt's Sisi warns against unilateral Nile actions, calls for global water cooperation    Egypt unearths New Kingdom military fortress on Horus's Way in Sinai    Syria releases preliminary results of first post-Assad parliament vote    Karnak's hidden origins: Study reveals Egypt's great temple rose from ancient Nile island    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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Stocks close lower as financials, materials lag
Published in Amwal Al Ghad on 07 - 03 - 2017

U.S. equities fell on Monday as the chances of tighter monetary policy from the Federal Reserve sunk in for investors, while geopolitical concerns increased.
"It feels like the fundamental picture is still there," said Art Hogan, chief market strategist at Wunderlich Securities, adding: "But at the same time you've got some events happening in March that are getting people worried. I think you're starting to see that."
The Dow Jones industrial average closed about 50 points, with Travelers contributing the most losses.
The S&P 500 declined 0.3 percent, with financials and materials leading decliners. The Nasdaq pulled back around 0.4 percent.
Market expectations for a rate hike were 86.4 percent Monday, according to the CME Group's FedWatch tool. The Fed's monetary policy committee is set to meet between March 14 and 15.
"The March rate hike doesn't matter. What matters is how many times they raise," said Jeremy Klein, chief market strategist at FBN Securities. "If they stay at three times [for this year], then the market will be fine."
The only potential obstacle for the Fed to raise rates at this point is the February jobs report, which is scheduled for release on Friday.
Economists polled by Reuters expect the U.S. economy to have added 186,000 jobs last month.
I think the market treads water ahead of the jobs report. That could give you the next 15 percent in rate hike expectations, said Kim Forrest, senior equity analyst at Fort Pitt Capital.
"But if it's a dramatic miss, it could take it off the table," Forrest added.
Investors also kept an eye on the geopolitical front after North Korea fired four ballistic missiles Monday, three of which landed in Japan's exclusive economic zone, according to Japanese Prime Minister Shinzo Abe.
The Japanese Nikkei 225 fell 0.46 percent overnight, lagging the rest of the region.
Meanwhile, in Europe, stocks declined broadly as bank stocks were led lower by Deutsche Bank.
Germany's biggest lender announced it will raise US$8.5 billion to boost its capital position and has set new financial targets.
"At the same time, the bank is going to cut its stake in asset management units by focusing more on its core business," said Naeem Aslam, chief market analyst at Think Markets in London.
"Deutsche Bank is going to remain on traders' dashboards as they try to make sense of company's future," Aslam noted.
Deutsche's U.S.-listed shares fell 3.8 percent, while the pan-European Stoxx 600 index pulled back 0.52 percent.
Stocks in the U.S. are coming off a record-setting week after a speech from President Donald Trump lifted expectations that the administration's agenda, notably regarding tax reform and deregulation, could become reality in the near future.
However, the Trump administration called for an investigation Sunday on whether former president Barack Obama wiretapped Trump Tower during last year's election.
Trump originally leveled the accusations against Obama on Saturday via Twitter, but did not provide and evidence supporting them.
"If the dynamic changes and the market believes Trump's pro-growth agenda will not go through, that would change the game on Wall Street," said Adam Sarhan, CEO of 50 Park Investments.
Trump signed a new travel ban Thursday, doubling down on the most divisive action of his young presidency.
The Dow Jones industrial average fell 51.37 points, or 0.24 percent, to close at 20,954.34, with Travelers leading decliners and Caterpillar leading advancers.
The S&P 500 declined 7.81 points, or 0.33 percent, to end at 2,375.31, with materials and financials leading 10 sectors lower and energy as the only riser.
The Nasdaq dropped 21.58 points, or 0.37 percent, to close at 5,849.17.
About three stocks declined for every advancer at the New York Stock Exchange, with an exchange volume of 795.71 million and a composite volume of 3.224 billion at the close.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 11.3.
Monday
CERAWeek conference begins
3:00 p.m. Minneapolis Fed President Neel Kashkari
Tuesday
Earnings: Brown-Forman, H&R Block, Michaels Cos, Dick's Sporting Goods, Urban Outfitters, and Navistar
8:30 a.m. Trade deficit
3:00 p.m. Consumer credit
Wednesday
Earnings: Adidas, Bob Evans, Ciena, Express, Hovnanian, Children's Place, Camping World, Sunrun, and United Natural Foods
8:15 a.m. ADP payrolls
8:30 a.m. Productivity and costs
10:00 a.m. Wholesale trade
Thursday
Earnings: Staples, Ulta Beauty, El Pollo Loco, Verifone, Zumiez, International Game Technology, Party City, Signet Jewelers, and Embraer
7:45 a.m. European Central Bank rate decision
8:30 a.m. ECB President Mario Draghi briefing
8:30 a.m. Jobless claims
8:30 a.m. Import prices
Friday
Earnings: The Buckle, Vail Resorts
8:30 a.m. Employment report
2:00 p.m. Federal budget
Source: CNBC


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