By Canadian Press

Global stock market rally runs out of steam

Feb 15, 2017 | 6:15 AM

SEOUL, Korea, Republic Of — Global stocks turned lower on Thursday as investors became cautious after a days-long run pushed U.S. indexes to record highs.

KEEPING SCORE: Britain’s FTSE 100 was down 0.5 per cent at 7,268 while France’s CAC 40 fell 0.4 per cent to 4,903. Germany’s DAX slipped 0.2 per cent to 11,765. Futures augured a tepid start on Wall Street. Dow and S&P futures were down 0.2 per cent.

US ECONOMY: On Wednesday, reports of stronger retail sales and inflation showed that the U.S. economy was stronger than expected. Consumer prices rose 2.5 per cent in January from a year earlier, the highest rate since March 2012. The data give the Federal Reserve more encouragement to raise interest rates, and economists said the possibility is increasing that it may happen at the central bank’s next meeting in March. While higher rates can weigh on growth, the confidence pushed U.S. stock indexes to new highs.

CORPORATE EARNINGS: Shares in consumer goods companies were under pressure after food and drinks giant Nestle said its earnings were weighed down last year by weak prices. Nestle shares were down over 2 per cent in Switzerland after it missed its growth target and said it would have to step up its cost cutting program.

SAMSUNG: Samsung Electronics Vice Chairman Lee Jae-yong attended a court hearing in a bid to avoid his arrest for a second time. South Korean prosecutors investigating a massive corruption scandal that led to the impeachment of President Park Geun-hye suspect that the Samsung heir bribed the president and her friend to win government favours, an allegation that Samsung denies. Investors weren’t immediately concerned by the possible arrest. Shares of Samsung Electronics rose 0.8 per cent to 1,901,000 won in Seoul.

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ASIA’S DAY: Asian markets closed mixed. Japan’s Nikkei 225 fell 0.5 per cent to 19,347.53 while South Korea’s Kospi edged down 0.1 per cent to 2,081.84. Hong Kong’s Hang Seng index gained 0.5 per cent to 24,107.70 and Shanghai Composite Index rose 0.5 per cent to 3,229.62. Australia’s S&P/ASX 200 inched up 0.1 per cent to 5,816.30. Stocks in Taiwan and Indonesia were lower but in Singapore and the Philippines they were higher.

CURRENCIES: The dollar fell to 113.61 yen from 114.02 while the euro strengthened to $1.0635 from $1.0615.

OIL: Benchmark U.S. crude gained 27 cents to $53.38 per barrel. The contract finished 9 cents lower on Wednesday. Brent crude, the international standard, was up 37 cents at $56.12 a barrel in London.

Youkyung Lee, The Associated Press