Asian shares creep higher, dollar languishes before ECB
"With some of the more benign inflation numbers that have come through recently and a potential pick-up in jobless claims might give the Fed a little bit more cause to (cut interest rates) at least maybe more than once this year," Keator said.
"That could be an encouraging sign, particularly for some sectors."
The Dow Jones Industrial Average fell 108.00 points, or 0.25%, to 42,319.74, the S&P 500 fell 31.48 points, or 0.53%, to 5,939.33 and the Nasdaq Composite fell 162.04 points, or 0.83%, to 19,298.45.
ECB CUTS RATES
As widely expected, the European Central Bank lowered its three key interest rates by 25 basis points, a decision based on its updated economic outlook now that inflation is currently around the central bank's 2% target.
Even so, European shares pared earlier gains to close only slightly in positive territory after ECB President Christine Lagarde appeared to float the possibility of a summer pause in its year-long easing cycle.
MSCI's gauge of stocks across the globe fell 2.47 points, or 0.28%, to 886.46.
The pan-European STOXX 600 index rose 0.16%, while Europe's broad FTSEurofirst 300 index rose 4.07 points, or 0.19%
Emerging market stocks rose 9.94 points, or 0.85%, to 1,182.39. MSCI's broadest index of Asia-Pacific shares outside Japan closed higher by 0.81%, to 622.86, while Japan's Nikkei fell 192.96 points, or 0.51%, to 37,554.49.
The dollar erased earlier gains in the wake of the soft U.S. economic indicators and Lagarde's hints at an ECB rate pause.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.01% to 98.80, with the euro up 0.18% at $1.1437.
Against the Japanese yen, the dollar strengthened 0.68% to 143.73.
U.S. Treasury yields gained ground as trade deal hopes outweighed soft economic data.
The yield on benchmark U.S. 10-year notes rose 3.5 basis points to 4.4%, from 4.365% late on Wednesday.
The 30-year bond yield was flat at 4.8877% from 4.888% late on Wednesday.
The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 5.6 basis points to 3.933%, from 3.877% late on Wednesday.
Crude oil prices rose after reports of the Trump/Xi call, which helped investors look past the U.S. stockpile buildup and Saudi Arabia's July price cuts for Asia.
U.S. crude rose 0.83% to settle at $63.37 per barrel, while Brent settled at $65.34 per barrel, up 0.74% on the day.
Gold prices reversed an earlier gain after the Trump-Xi call hinted at a thaw in trade relations between Washington and Beijing.
Spot gold fell 0.56% to $3,356.41 an ounce. U.S. gold futures fell 0.48% to $3,357.30 an ounce.
(Reporting by Stephen Culp; additional reporting by Marc Jones in London; editing by Mark Heinrich and Sandra Maler)
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