|
 European bourses and the euro also dipped in early trading after
both had been boosted on Monday by a revamp of Greece's negotiating
team, while the pound tumbled on weak UK growth figures just ahead
of next week's tightly contested national election.
Quarterly growth came in at 0.3 percent, well below forecasts of 0.5
percent and the slowest pace in more than two years.
The figures were seen as loaded with significance coming just nine
days before an election and its aftermath, when Britain's future
cohesion and its membership of the European Union could be
potentially at stake.
"I think the real risk is so much uncertainty," said Societe
Generale strategist Kit Juckes.
"We could have two elections in 12-18 months and that would just see
a cacophony of policy suggestions that would only add to that
uncertainty."
The pound had been hovering at a near two-month high but the data
pushed it down to $1.5188 from $1.5258 and to 1.39 from 1.40 versus
the euro.
Britain's FTSE stock index, which has been riding a wave of all-time
European highs in recent weeks, was left 0.8 percent lower, although
the fall was broadly in line with moves on Germany's DAX and
France's CAC 40.
Overnight in Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan had followed Wall Street lower as it dropped 0.5
percent, but only after touching its highest level since January
2008.
The main culprit was Chinese shares, which dropped 1.4 percent. They
though have almost doubled in value since October on the launch of
Western and domestic market-friendly trading links and monetary
policy easing hopes.
Investors were also looking to limit their risk ahead of the start
of the two-day Fed meeting later.
There will be no news conference or forecasts this time around and
analysts expect no change in the central bank's policy statement
following recent weaker-than-forecast domestic data.
The dollar, whose strength has also been seen as a factor in the
soft data, was little changed against most of the world's other
major currencies and was at 119.095 yen after touching 119.44
overnight. The Bank of Japan also meets this week.
[to top of second column] |
The euro was in focus too, having climbed to a three-week peak of
$1.0927, well off its 12-year nadir of $1.0457 plumbed in mid-March.
It last stood at $1.0873, down about 0.1 percent on the day.
Greek Prime Minister Alexis Tsipras on Monday reshuffled his team
handling talks with European and IMF lenders, a move widely seen as
an effort to relegate embattled Finance Minister Yanis Varoufakis
and get talks back on a better track.
"He (Varoufakis) is creating a number of tensions so that
(reshuffle) can certainly help the negotiations," one of the ECB's
top policymakers and Bank of France chief, Christian Noyer, said on
Tuesday.
In commodities trading, crude oil extended Monday's losses as ample
global supply blunted support from the conflict in Yemen and the
falling number of U.S. rigs drilling for oil.
Weekly U.S. crude inventory data is also expected to show another
high, and Saudi Arabia pledged to supply more oil to China if
needed, which kept traders cautious after prices reached 2015 peaks
last week.
Brent was down about 1 percent at $64.19 a barrel, while U.S. crude
shed about 1.2 percent to $56.33. Gold, meanwhile was flat at $1,200
an ounce.
(Additional reporting by Shinichi Saoshiro and Ayai Tomisawa in
Tokyo; Editing by Susan Fenton)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
