World stocks mixed amid investor jitters, commodities tumble

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SINGAPORE/LONDON, July 30 - World stocks were mixed in choppy trading on Monday as investors were jittery ahead of major corporate earnings reports and central bank moves, and concern over the global economic outlook dented commodities and oil prices touched early June lows.

"The consensus is that the U.S. economy is going to be softer this quarter and maybe next quarter as well and you can't really rely on the euro area to offer any compensation for that. China has got its own problems and doesn't look like it's going to snap into gear," Daiwa Capital economist Chris Scicluna said.

On Wall Street, the Dow Jones Industrial Average , rose 162.83 points, or 0.40%, to 40,702.76, the S&P 500 , lost 2.44 points, or 0.04%, to 5,461.10 and the Nasdaq Composite , lost 63.85 points, or 0.37%, to 17,306.35. Markets are pricing almost no chance of a U.S. rate cut this week, but have fully priced a 25-basis-point reduction in the Fed Funds rate for September and so expect policymakers to sound dovish.

"It is too early to tell if the factors driving yen weakness have changed permanently. For now, this seems more like a short-term correction to the USD/JPY higher trend, but we feel there is downside risk that needs to be priced into a trade."

 

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