(Updates prices, adds Fiat news)
* Dollar slips, bonds rally after Trump short on stimulus
* Healthcare stocks in Europe drop 2 percent after Trump
* Oil consolidates after bounce; gold hits 7 week high
By Gertrude Chavez-Dreyfuss
NEW YORK, Jan 12 Wall Street stocks fell and the
U.S. dollar dropped to a five-week low on Thursday after
President-elect Donald Trump, in his eagerly-awaited news
briefing the previous day, failed to provide details on fiscal
policies that were expected to bolster the economy.
Investors were hoping for commentary on the new
administration's plans for fiscal stimulus and tax cuts.
Instead, Trump remarked on a broad range of topics such as the
Mexican wall, allegations of Russian hacking and his business
interests but left out what investors wanted to hear about -
"The lack of focus in Mr. Trump's first press conference
since winning the election fanned worries about the
president-elect's willingness or ability to drive a pro-growth
agenda once in office," said Omer Esiner, chief market analyst,
at Commonwealth Foreign Exchange in Washington.
In early afternoon trading, The Dow Jones Industrial Average
fell 95.41 points, or 0.48 percent, to 19,858.87, while
the S&P 500 lost 8.94 points, or 0.39 percent, to
2,266.38. The Nasdaq Composite, on the other hand,
dropped 29.21 points, or 0.53 percent, to 5,534.44, a day after
hitting a record high.
The dollar, meanwhile, hit a five-week trough against a
basket of major currencies and was on track for its worst week
since November. The dollar index, which measures the
greenback against six major currencies, last traded down 0.6
percent at 101.20. The dollar slid to a five-week low versus the
yen and last traded down 1.0 percent at 114.29 yen.
Trump did not mention tariffs against Chinese exports, a
relief for Asian markets fearing the outbreak of a global trade
war. But there was more pain for the dollar as the euro drove
higher on ECB minutes showing a split over stimulus.
The President-elect's lack of policy detail also put safety
plays such as bonds and gold back in favor. The retreating
dollar also brought relief for Brexit-bruised sterling
and Turkey's lira.
Benchmark U.S. Treasury 10-year note prices rose 9/32, with
the 10-year note yield down at 2.335 percent,
although a soft U.S. 30-year bond auction has boosted yields
European shares also fell, bucking gains in Asia
overnight and weighed down by a 2 percent slump in healthcare
stocks after Trump had said pharmaceutical firms had
been "getting away with murder" with their prices.
U.S.-listed shares of Fiat Chrysler Automobiles NV
were down 8.3 percent at $10.16 after the U.S. Environmental
Protection Agency on Thursday accused the company of illegally
using hidden software that allowed significant excess diesel
In commodity markets, oil was higher, bolstered by news that
Saudi Arabia has cut oil output to its lowest in almost two
years, according to its energy minister. The world's largest oil
exporter is leading OPEC's drive to eradicate a global glut and
prop up prices.
U.S. crude was trading up 1.6 percent at $53.09 and
Brent crude was up $1.01, or 1.8 percent at $56.11 a
barrel, following gains of nearly 3 percent on Wednesday.
The weaker dollar also helped metals markets. Gold rose to a
seven-week high just shy of $1,200 per ounce while London
copper traded up almost 2 percent after electronic
trading there was delayed by a five-hour outage.
The recently weak Chinese yuan also firmed on the day
against the dollar.
Asset management giant PIMCO said on Thursday it thought
there was a chance Beijing could fully float the yuan this year.
"Over the year, our base case is for the yuan to decline
against the U.S. dollar by a mid- to high-single-digit
percentage," said Luke Spajic, PIMCO's head of Asian portfolios.
"However, we also think the possibility that the PBOC will
allow the yuan to float freely, or at least widen its trading
band, has increased."
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Sam Forgione, Richard Leong in New York, and Yashaswini
Swamynathan in Bengaluru; Editing by Dan Grebler)