NEW YORK, Jan 11 (Reuters) - U.S. Treasuries rallied across
the board on Wednesday, while the dollar fell after trading
higher for most of the session as President-elect Donald Trump
did not provide much clarity on his future policies.
U.S. stocks also weakened initially after Trump took aim at
the pharmaceutical industry for charging high prices. He said
pharmaceutical companies are "getting away with murder."
"U.S. Treasuries rose because stocks caved in with Trump's
pharmaceutical comments," said Kim Rupert, managing director of
global fixed income at Action Economics in San Francisco.
"Overall Trump did not really say anything new. As a result,
we're still in wait-and-see mode with respect to his policies."
In his first press briefing as U.S. president-elect, Trump
presided over a wide-ranging session that touched on topics such
as allegations of Russia spying, Mexico, his business interests,
and drug pricing.
But the briefing, which lasted longer than people expected,
did not break new ground, analysts said.
Traders were hoping that after making generally broad
statement for the last two months on what he intended to do as
president, Trump would give more specific details about key
The Dow Jones industrial average was up 0.2 percent
on the day at 19,901.57, while the S&P 500 fell 0.3
percent to 2,262.98. The Nasdaq Composite added 0.1
percent, to 5,526.05, a day after hitting a record high.
Other global stock indexes edged higher as well.
The UK's FTSE 100 posted a record 12th straight day
of gains while European shares rose 0.2 percent to
MSCI's broadest index of Asia-Pacific shares outside Japan
also gained 0.83 percent, to 445.2, while the
MSCI world equity index, which tracks shares in
45 nations, inched 0.2 percent higher to 429.88.
In the bond market, benchmark U.S. 10-year Treasury prices
were up 9/32 in price, yielding 2.344 percent, down
from Tuesday's 2.379 percent. German 10-year yields also fell to
0.2410 percent, from 0.248 percent the previous
Trump's comments reversed earlier dollar gains, with the
dollar falling 0.4 percent against a basket of currencies to
101.58. The greenback also fell sharply versus the yen,
down 0.7 percent at 114.92 yen.
Trump's campaign calls for tax cuts and more infrastructure
spending have boosted U.S. shares and the dollar, as well as
driving a selloff in Treasuries, but his protectionist
statements and a flurry of off-the-cuff Tweets have kept many
investors from adding to risky positions.
"The hope is for a pivot back toward the Trumponomics
agenda, which was three key themes: tax reform, deregulation,
and infrastructure spending," said Vassili Serebriakov, a
currency strategist at Credit Agricole in New York.
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.
"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.
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
immigration controls. But by early afternoon trading as the
dollar weakened, sterling rose 0.4 percent to $1.2225.
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.
Brent crude was last up $1.76, or 3.3 percent, at
$55.4 a barrel. U.S. crude, on the other hand, climbed
3.4 percent, to $52.54 per barrel.
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Vikram Subhedar in London and Sam Forgione in New York; Editing
by Chizu Nomiyama)
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