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New York - Global stocks pared their first weekly gain in about a month as traders assessed mixed corporate earnings.
The dollar advanced to the strongest level against the euro since March on speculation that US monetary policy will diverge from stimulus measures in Europe and Asia.
Equities fell as disappointing forecasts from General Electric and Daimler overshadowed optimism with Microsoft and SAP’s results. The greenback rose against most of its major counterparts as traders bet on a US interest-rate increase by December.
Crude held above $50 a barrel as investors weighed the likelihood of a deal to reduce supply after Russia’s Energy Minister said the country’s output could rise to a record next year.
Investors are parsing earnings reports and outlooks from companies to gauge the health of the corporate sector amid uneven global growth. Traders are pricing in less than one-in-five odds of a hike at the Federal Reserve’s next meeting, which takes place days before the presidential election, and about a 69% chance of action in December.
Fed Governor Daniel Tarullo and San Francisco Fed President John Williams were scheduled to speak today.
“Earnings this season have been all over the place, a mixed-to-OK season with banks better than expected,” said Otto Waser, chief investment officer of R&A Group Research & Asset Management in Zurich.
“People are generally more cautious when rates rise. Underlying earnings growth is close to zero, so why should the market move higher with interest rates going higher?”
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