LONDON Jan 11 World stocks edged down from
recent highs and the dollar steadied ahead of a news conference
by U.S. President-elect Donald Trump in which he is expected to
give more details about his plans for the U.S. economy.
While Trump's election campaign calls for tax cuts and more
infrastructure spending have boosted U.S. shares and the dollar,
his protectionist statements and a flurry of off-the-cuff Tweets
have kept many investors from adding to risky positions.
European shares fell 0.3 percent while the UK's
FTSE 100 was on track to snap an 11-day winning streak,
with both indexes hurt by weakness in industrials. Stock futures
on Wall Street eased 0.1 percent as the post-U.S.
election rally shows signs of running out of steam.
Trump has vowed to label China a currency manipulator on his
first day in office on Jan. 20 and has threatened to slap huge
tariffs on imports from China.
U.S. House of Representatives Speaker Paul Ryan and top
members of Trump's transition team are discussing a
controversial plan to tax imports.
Economists have warned that protectionist measures could
stifle international trade and hurt global growth.
That brings Trump's press conference, scheduled for 11:00
EST (1600 GMT), into sharp focus.
"From a currency perspective, markets will aim to get a
clearer picture on trade, fiscal stimulus and the new
administration's relationship to the Fed," Morgan Stanley
strategists wrote in a note to clients.
The dollar inched higher against the yen on Wednesday
but was little changed against the basket of currencies
used to measure its broader strength.
The dollar has gained broadly since Trump's election in
November as investors bet he would boost public spending and
spur repatriation of overseas funds by U.S. companies as well as
higher inflation and interest rates.
Sterling meanwhile edged towards a 10-week low
against the dollar on Wednesday, kept under pressure by fears
that Britain will undergo a "hard" exit from the EU in which
access to the single market will play second fiddle to
The Turkish lira fell to new lows despite efforts by the
country's central bank to support it with pressures piling on
An auction of German debt was expected to go down well with
investors looking for safe havens. Portuguese yields held near
11-month highs as the country prepared for its toughest bond
sale in years.
In commodity markets, oil rose, lifted by reports of Saudi
supply cuts to Asia, but gains were capped by a lack of detail
about the reductions and because of signs of rising supplies
from other producers.
Prices for Brent futures LCOc1, the international benchmark
for oil prices, were trading at $53.94 per barrel at 0800 GMT,
up 30 cents from their previous close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
at $51.11 a barrel, up 29 cents.
(Editing by Hugh Lawson)