Dubai: Global stocks from the UAE to the United States tumbled on Tuesday as lower than expected results from Microsoft raised concerns on the strength of economic recovery in world’s largest economy.
Investors were also closely watching the two-day meeting of Federal Reserve officials in Washington. The central bank is trying to determine whether declining oil prices, a slowdown in European growth and any fallout from the Greek elections will threaten the US recovery as it considers raising interest rates.
The Dow Jones Industrial average was 1.66 per cent lower at 17,384.98, while the S&P 500 index was also 1.23 per cent lower at 2,031.85. Euro STOXX50 index was down 1.50 per cent to be at 3,363.23.
Dollar slides:
The dollar declined from the highest level on record after US durable-goods orders unexpectedly decreased in December.
The euro rose after a Swiss National Bank official said it remained ready to intervene in markets. The dollar fell 1.2 per cent to 1.1378 against the euro after rising to 1.1098 yesterday, the strongest since September 2003.
Orders for US durable goods — items meant to last at least three years — decreased 3.4 per cent in December after falling 2.1 per cent the prior month, Commerce Department data showed. Separate reports showed U.S. consumer confidence surged more than forecast, while purchases of new homes increased 11.6 per cent in December.
Brent crude futures held above $48 (Dh176.3) as a weaker dollar offset the impact of a global supply glut. Brent hit $45.19 on January 13, the lowest since 2009 and down from a June 2014 peak of $115.71, but has since traded in a narrow band of $47-$50.62.
Brent crude has shed more than 60 per cent since June last year due to concerns over a supply glut.
Gold in the international market was up more than 1 per cent at $1,295.04 an ounce, while silver was at $18.10 per counce up more than 1 per cent.
