Europe stocks slightly lower; dollar slips

The dollar slid yesterday after Fed chief Janet Yellen made no signals about monetary policy, while US stocks ticked higher on hopes of tax reform.During a much anticipated address at an annual economists’ symposium at Jackson Hole, Wyoming, Yellen steered clear of comments on the Fed’s plans to begin cutting down on its huge holdings of bonds and the possibility of raising interest rates again this year.Instead, she defended regulations adopted after the 2008 financial meltdown, saying they promoted stability and growth, effectively rebutting White House calls for a roll-back.“Traders dumped the US dollar after Yellen failed to discuss monetary policy,” said market analyst David Madden at CMC markets UK.European Central bank (ECB) head Mario Draghi was due to speak later.The euro has rallied in recent weeks on speculation the ECB will begin to wind down its crisis-era stimulus measures as the eurozone continues to improve.European stocks turned slightly lower in late trading as the euro and pound rose against the dollar.London’s FTSE 100 dropped.08% at 7,401 points, Frankfurts DAX 30 was down 0.1% to 12,167.94 and in Paris CAC 40 lost 0.2% to 5,104.33 at close yesterday.US stocks, however, made gains on renewed hopes of tax reform.“The Dow Jones, S&P 500 and NASDAQ 100 have all opened higher today as investors are buying equities on the back of comments from Gary Cohn, Trump’s chief economic advisor, that the US president will launch plans to bring in tax reforms next week,” said Madden.US equities have struggled this week as Donald Trump berated top members of his Republican party, threatened to shut down the government and rip up a key trade deal with Canada and Mexico.His ongoing battle with Capitol Hill has fanned fears the tycoon will not be able to push through his promised tax cuts, deregulation and infrastructure spending programme, which many believe would help fire up the US economy.Oil prices gained as Hurricane Harvey barrelled towards the crude-rich Texas coastline, causing the closure and evacuation of platforms. The Gulf Coast is home to around half the United States’ refining capacity.“As refineries and terminals start slowing or shutting down operations, gasoline prices spiked on fears of damage to facilities,” said Sukrit Vijayakar of energy consultancy Trifecta.