US stock markets fall on Trump talk as dollar steadies

Bloomberg

US stocks opened lower as the dollar stabilized from earlier losses as markets digested comments from US President Donald Trump on Wednesday denouncing the greenback’s strength and championing lower interest rates. Banking stocks led a European decline.
The S&P 500 Index opened down 0.25 percent at 2,339.09 Thursday, while the Dow Jones Industrial average fell 0.24 percent to 20,543.27. The Bloomberg Dollar Spot Index was essentially flat after falling below its 200-day moving average on Wednesday. US Treasury yields were steady as European bonds gained across the board. The falling yields battered lenders, who led the retreat as the Stoxx Europe 600 Index slid.
Big moves in the aftermath of Trump’s remarks, which also signaled a softening stance on China’s currency practices and took in the future of Fed Chair Janet Yellen, added momentum to a jump in volatility across global stock markets. After weeks of relative calm, traders are attempting to get a handle on the president’s unpredictable interventions, rising geopolitical risks, the end of easy central bank cash and key elections in Europe.
Lower volumes in the shorter trading week before Easter may have compounded the swings. “Markets look distracted by a whole bunch of contradictory bluster,” Bill Blain, a strategist at Mint Partners in London, wrote in a note. “Let’s not forget we’re facing four days of closed markets. Most institutional investors and the banks have already bedded down their positions ahead of the holidays.”