Dow Jones gives up 200-point surge as trade-fuelled rally loses steam



December 14, 2018 07:38:50

The local share market is expected to slip at the open, amid a temperamental trading day on Wall Street.

The Australian dollar was buying 72.24 US cents, 57.07 British pence and 63.56 Euro cents at 7:15am (AEDT).

New York’s trading day began with optimism after a spokesman from Beijing’s commerce ministry said the US and China were in “close contact” for their trade talks.

A rally sparked by hopes of a de-escalating US-China trade war faded throughout the day.

The main US indices seesawed between positive and negative territory.

The industrial-skewed Dow Jones rose 50 points, or 0.2 per cent, to 24,578 at 3:15pm (New York time) — a long way down from its initial 200-point jump.

The benchmark S&P 500 slipped 0.2 per cent to 2,646.

Meanwhile, the tech-heavy Nasdaq index lost 0.6 per cent to 7,055.

There are several factors weighing on stock market investors, ranging from an unresolved trade war, the Federal Reserve’s likely announcement of a December interest rate hike, Brexit uncertainty, to fears of a US recession (or at least slowing economic growth).

More to come.







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