US stocks dip as London gyrates with election polls
Wall Street stocks declined for the second straight session Wednesday, as a Federal Reserve report pointed to ebbing optimism in companies around the United States. European markets were mixed, with the FTSE in London and the pound gyrating after polling data surprised investors ahead of British election on June 8. US stocks fell as the Fed's "beige book" said while sentiment remained broadly upbeat, uncertainty about trade and other government policies were weighing on optimism in some regions. Banking shares were especially weak after large banks said trading revenues were lower so far in the second quarter compared with the year-ago level. US stocks also dipped Tuesday, the first session of the holiday-shortened week, with major indices pulling back from the records struck Friday. In Britain, the pound stumbled after a surprise poll by YouGov forecast that Conservatives would fall short of a majority in next week's June 8 general election against Labor. The declining pound boosted the FTSE during the session, but those patterns later reversed, with the pound finishing higher and stocks slightly lower. "In the UK polls have continued to be the main driver of trading, with the UK markets remarkably sensitive to each individual survey," said analyst Connor Campbell at Spreadex. The pound has slid along with the government's poll numbers on fears Britain could end up with a bad EU exit deal. "For the next week, (the pound) will be vulnerable to every poll headlines that hits the screen, especially if Labor begins to pick up momentum once again," said Boris Schlossberg of BK Asset Management. Asian stocks mostly rose after China's purchasing managers' manufacturing index held up in May, beating expectations for a decline. The reading indicated the sector continues to grow and suggests the economy is feeling the benefits of a pick-up in global demand. Shanghai, which was closed Monday and Tuesday for a holiday, ended the day up 0.2 percent, Sydney added 0.1 percent and Seoul was 0.2 percent higher. Singapore and Jakarta also gained 0.2 percent. However, Tokyo ended 0.1 percent lower and Hong Kong shed 0.2 percent after a one-day break. - Key figures around 2100 GMT - New York - Dow: DOWN 0.1 percent at 21,008.65 (close) New York - S&P 500: DOWN 0.1 percent at 2,411.80 (close) New York - Nasdaq: DOWN 0.1 percent at 6,198.52 (close) London - FTSE 100: DOWN 0.1 percent at 7,519.95 points (close) Frankfurt - DAX 30: UP 0.1 percent at 12,615.06 (close) Paris - CAC 40: DOWN 0.4 percent at 5,283.63 (close) EURO STOXX 50: UP 0.1 percent at 3,562.87 Tokyo - Nikkei 225: DOWN 0.1 percent at 19,650.57 (close) Hong Kong - Hang Seng: DOWN 0.2 percent at 25,660.65 (close) Shanghai - Composite: UP 0.2 percent at 3,117.18 (close) Euro/dollar: UP at $1.1241 from $1.1195 at 2100 GMT on Tuesday Dollar/yen: DOWN at 110.75 yen from 110.76 yen Pound/dollar: UP at 1.2892 from $1.2862 Oil - Brent North Sea: DOWN $1.53 at $50.31 per barrel Oil - West Texas Intermediate: DOWN $1.34 at $48.32 per barrel burs-jmb/hs
