U.S. Stocks Slump On Faster Rate Hike Concerns
IFC Markets | Feb 05, 2018 08:49AM ET
US stock indices log worst weekly losses in two years
US stock indices slumped but dollar rallied on Friday as bigger than expected increase in January nonfarm payrolls stoked concerns Federal Reserve may fasten the pace of rate hikes. The S&P 500 fell 2.2% to 2762.13 led by 4.5% loss in energy shares. The US broad market index fell 3.9% for the week. Dow Jones industrial average sank 2.5% to 25520. The NASDAQ Composite fell 2% to 7240.95. Futures on indices indicate lower opening today.
German DAX 30 leads European indices lower
European stocks retreated for a fifth straight session on Friday after Deutsche Bank (DE:DBKGn) posted a bigger than expected loss in the fourth quarter. Both the euro and British Pound turned lower against the dollar. The Stoxx Europe 600 index fell 1.4% posting 3.1% loss for the week. The DAX slumped 1.7% to 12785.16. France’s CAC 40 fell 1.6% and UK’s FTSE 100 lost 0.6% to 7443.43. Markets opened 0.8%-1.1% lower today.
Nikkei leads Asian markets lower
Asian stock indices are mostly lower today as investors turned cautious on the prospect of faster tightening of Fed monetary policy after better than expected US jobs report. Nikkei ended 2.5% lower at 22686 as the yen resumed strengthening against the dollar. Chinese stocks are mixed: the Shanghai Composite Index is up 0.7% while Hong Kong’s Hang Seng Index is 1.1% lower. Australia’s ASX All Ordinaries is down 1.6% despite continued Australian dollar weakness against the greenback.
Brent extends losses
Oil futures prices are edging lower today following Friday sell-off on higher US output data. Prices fell Friday on rising US domestic output concerns after US Energy Information Administration report indicated US oil production exceeded 10 million barrels a day in November for the first time in nearly 50 years. April Brent fell 1.5% to $68.58 a barrel on Friday. It lost 2.2% in the week.
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