* Europe stocks up, world stock index dips with Wall Street
* Investors skeptical of getting specifics in Trump speech
* Oil futures, gold down
(Updates to late afternoon U.S. trading, adds commentary)
By Sinead Carew
NEW YORK, Feb 28 Stocks in major markets dipped
along with the U.S. dollar and U.S. Treasury yields on the last
day of February as investors waited for signals on stimulus
spending and tax cuts in President Donald Trump's Tuesday night
The global MSCI ACWI index was off 0.3
percent after rising more than 8 percent since Trump's election
in November on expectations for a pro-business administration.
Investors worried whether Trump would be able to reveal any
concrete plans to realize his campaign promises and some
mentioned the possibility of a U.S. equities correction.
"There's significant risk for a potential delay or a
watering down of the campaign promises. He can get some things
done but it won't be as phenomenal as expected," said Paul
Eitelman, Multi-Asset Investment Strategist at Russell
Investments in Seattle.
Wall Street indexes and bond yields were not helped by
fourth-quarter U.S. data including gross domestic product growth
that was below expectations while some investors had hoped for
an upward revision, according to investment
In late-afternoon New York trading, the Dow Jones Industrial
Average was down 31.19 points, or 0.15 percent, to
20,806.25, the S&P 500 had lost 7.73 points, or 0.33
percent, to 2,362.02 and the Nasdaq Composite had
dropped 39.10 points, or 0.67 percent, to 5,822.80.
"The real question becomes how much patience does the market
have," said Quincy Krosby, market strategist at Prudential
Financial in Newark, New Jersey.
The U.S. dollar was down 0.05 percent against a basket of
currencies. It rallied to a 14-year high soon after the
U.S. election but is down year-to-date in the absence of
specific plans on Trump's key promises.
Trump met U.S. state governors at the White House on Monday
and said he sees "big" infrastructure spending and is seeking a
military spending hike of more than 9 percent.
David Kelly, Chief Global Strategist, JP Morgan Asset
Management, does not expect highly detailed policy proposals.
"However, it will be important to see how optimistic the
administration is about the economic outlook and how willing it
is to boost the deficit in an attempt to fulfill the president’s
campaign promises," he said.
Yields on benchmark 10-year U.S. Treasury notes
were last at 2.347 percent, down two basis points from late
Monday as investors were cautious ahead of the speech.
"People need more concrete evidence about the fiscal side of
the equation," said Charles Comiskey, head of Treasuries trading
at Bank of Nova Scotia in New York.
In Europe, upbeat company earnings helped the FTSEurofirst
300 index rise 0.2 percent, snapping a three-day dip
and consolidating a 2.6 percent monthly gain.
In commodity markets, oil futures dipped with OPEC-led
output cuts offset by increasing crude production from the
United States. Brent crude was down 0.7 percent at
$55.56 a barrel while U.S. crude was down 0.3 percent at
Gold was down 0.2 percent at $1,250.68 an ounce. On
Monday it had hit a 3-1/2-month high intraday but ended lower.
(Additional reporting by Caroline Valetkevitch, Sam Forgione
and Karen Brettell in New York, Marc Jones in London, and Lisa
Twaronite in Tokyo; Editing by Clive McKeef and James Dalgleish)