World stocks edge lower; oil price rises

FE Report | Published: July 29, 2017 08:43:02 | Updated: October 18, 2017 03:25:30


Global stocks fell on Friday as results from some big US companies disappointed and tobacco shares dropped, while oil prices had their biggest weekly percentage rise this year.

Altria Group fell 9.5 per cent and was the biggest drag on the S&P 500, while US-listed shares of British American Tobacco dropped 7.0 per cent.

Amazon's stock fell after the world's largest online retailer reported late Thursday a jump in retail sales along with a profit slump. Results from Exxon Mobil and Starbucks also disappointed.

Despite Friday's share reactions, second-quarter results have come in mostly better than expected, and stocks are trading near record highs.

The Dow Jones Industrial Average rose 33.76 points, or 0.15 per cent, to close at 21,830.31, the S&P 500 lost 3.32 points, or 0.13 per cent, to 2,472.1 and the Nasdaq Composite dropped 7.51 points, or 0.12 per cent, to 6,374.68.

MSCI's 47-country All World share index was down 0.2 per cent, while the European STOXX 600 index was down 1.0 per cent.

Oil prices rose, extending this week's strong rally built on news that key OPEC members pledged to reduce exports and bigger-than-expected US inventory drawdowns.

Brent crude futures LCOc1 rose $1.03 to settle at $52.52 per barrel, while US crude futures CLc1 rose 67 cents to settle at $49.71.

For the week, US crude rose nearly 9.0 per cent, its biggest weekly gain this year. The gains in Brent pushed the difference between the two benchmarks to the widest in two months.

The US dollar was broadly lower as a combination of uninspiring US economic data and political uncertainty kept traders biased towards the euro and other world currencies, according to Reuters.

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