Global stocks lower, except for Tokyo, on Yellen speechComments Off on Global stocks lower, except for Tokyo, on Yellen speech
(AP) Most global stocks slipped Monday on remarks from the U.S. Federal Reserve late last week that the case has strengthened for raising interest rates, but the Tokyo market was an exception and gained on prospects for a strong dollar.
KEEPING SCORE: France’s CAC 40 lost nearly 0.2 percent in early trading to 4,434.93, while Germany’s DAX dipped 0.3 percent to 10,551.34. The London Stock Exchange was closed for a summer bank holiday. U.S. shares were also set to drift lower, with Dow futures shedding nearly 0.1 percent to 18,367. S&P 500 futures were down 0.1 percent to 2,166.50.
ASIA’S DAY: Japan’s benchmark Nikkei 225 added 2.3 percent to close at 16,737.49. Japanese stocks generally gain on a weak yen because the earnings of the nation’s giant exporters are boosted. South Korea’s Kospi fell 0.3 percent to 2,032.35. Hong Kong’s Hang Seng slipped 0.4 percent to 22,821.74, while the Shanghai Composite inched down 0.01 percent to 3,070.03.
FED FACTOR: U.S. Fed Chair Janet Yellen made comments Friday that were bullish on the economy but gave no timetable for future rate increases. But that set off speculation among investors about an interest rate hike later this year, and that in turn set off worries about global growth.
THE QUOTE: “The dollar jumped after the Federal Reserve’s chairperson, Janet Yellen, signaled an impending rate hike in a speech at Jackson Hole last Friday,” said Margaret Yang Yan, market analyst at CMC Markets Singapore. “While the rate hike has not yet happened, markets have already begun to move and shift with the assumption of a hike.”
ENERGY: Benchmark U.S. crude oil fell 71 cents to $ 46.93. It had risen 31 cents to close at $ 47.64 a barrel on Friday. Brent crude, used to price oil internationally, lost 75 cents to $ 49.40.
CURRENCIES: The dollar rose to 102.31 yen from 100.51 late last week in Asia. The euro fell to $ 1.1187 from $ 1.1289.
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