Stock markets around the world struggled to gain momentum Thursday, while the U.S. dollar slipped slightly following reports that President Donald Trump is set to choose a new head of the Federal Reserve.
The WSJ Dollar Index was down 0.2% recently after The Wall Street Journal reported that Mr. Trump intends to nominate Fed governor Jerome Powell to be the central bank's next chairman.
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The Stoxx Europe 600 was flat in early trade, while futures markets pointed to a small opening loss for the Dow Jones Industrial Average after Wall Street ended higher the previous day. Most Asian markets notched small declines.
Investors have a busy calendar of events to follow Thursday. In the U.K., the Bank of England is widely expected to lift its main interest rate for the first time in more than a decade. In Washington, House Republican leaders are rushing to release their tax plan.
Analysts also remain focused on the latest batch of company earnings, which many credit as the primary driver of big gains for stocks this year. Facebook Inc. reported a sharp jump in third-quarter profit on Wednesday, while Apple Inc. is due to release results later Thursday.
"The real momentum at the moment is with the technological sector," said Paul Markham, a fund manager with Newton Investment Management.
Mr. Markham said he's happy to own technology stocks still, even if he is worried about "the crowded nature of that" trade.
"There's no doubt that the future of the economy does sit in the hands of these guys," he said.
In Europe, shares in Credit Suisse Group AG rose 1.9% after the Swiss banking giant reported a jump in third-quarter net profit on strong growth in wealth management.
Moves in currencies and bond markets were muted following reports of the appointment of Mr. Powell, an ally of Fed Chairwoman Janet Yellen who is widely expected to continue the central bank's gradual approach to tightening monetary policy. Separately, the Fed also kept policy on hold on Wednesday as expected and signaled it remains on course to raise interest raise rates once more this year.
The dollar pared some of its earlier losses during European trading hours, but remained weaker against other major currencies. In bond markets, the yield on the 10-year Treasury note was 2.371% recently, according to Tradeweb, from 3.378% on Wednesday.
Chatter that proposed tax cuts also set to be unveiled Thursday wouldn't be as extensive as expected weighed on the dollar, said Sean Callow, a forex strategist at Westpac.
In the Asia-Pacific region, China's Shanghai Composite Index fell 0.4%, while Australia's S&P/ASX 200 declined 0.1%. Japan was the region's notable outperformer, with a rally in the last hour of trading sending the Nikkei Stock Average up 0.5% to another 21-year high.
In commodity markets, Brent crude oil was down 0.4% at $60.27 a barrel.
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(END) Dow Jones Newswires
November 02, 2017 04:54 ET (08:54 GMT)