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Saudi- Equity markets fall on concerns about global growth
(MENAFN- Arab News) NEW YORK: Global equity markets fell on Friday pulled lower by concerns about slumping crude oil prices while the dollar slipped against the yen on views the Bank of Japan may not ease policy as much as expected.
Investors were cautious in the wake of the euphoria that followed the US Federal Reserve's first interest rate hike in almost a decade earlier in the week.
The yen gained after the BoJ merely tweaked its monthly asset-purchase program putting a pause in the dollar's rise in recent months on views that the Fed's likely decision to raise interest rates and the BoJ's path of more potential stimulus would drive investment into higher-yielding US assets.
The Fed raised rates on Wednesday for the first time in almost a decade.
'The BoJ's move shows a weak hand' said Jens Nordvig global head of FX strategy at Nomura in New York.
'It suggests the BoJ is out of ammunition and will not be able to deliver anything meaningful going forward' he said.
Equities suffered from fatigue after markets had risen in anticipation of the Fed move while the price of oil was driving investor sentiment on concerns over global growth and a growing supply surplus.
'We had a couple of strong days as a result of the Fed' said Andrew Wilkinson chief market strategist at Interactive Brokers LLC in Greenwich Connecticut.
'The market is getting sucked into a fear trade' he said. It's really oil is it a glut or a global slowdown? But I don't think it's symbolizing a slowdown in the global economy.'
MSCI's all-country world stock index fell 0.74 percent while the FTSEurofirst 300 index of leading European share dropped 0.98 percent to 1420.038.
On Wall Street the Dow Jones industrial average fell 186.7 points or 1.07 percent to 17309.14.
The S&P 500 slid 15.45 points or 0.76 percent to 2026.44 and the Nasdaq Composite lost 21.57 points or 0.43 percent to 4980.99.
Treasury prices rose. The benchmark 10-year US Treasury note rose 9/32 in price to yield 2.2058 percent.
Investors were cautious in the wake of the euphoria that followed the US Federal Reserve's first interest rate hike in almost a decade earlier in the week.
The yen gained after the BoJ merely tweaked its monthly asset-purchase program putting a pause in the dollar's rise in recent months on views that the Fed's likely decision to raise interest rates and the BoJ's path of more potential stimulus would drive investment into higher-yielding US assets.
The Fed raised rates on Wednesday for the first time in almost a decade.
'The BoJ's move shows a weak hand' said Jens Nordvig global head of FX strategy at Nomura in New York.
'It suggests the BoJ is out of ammunition and will not be able to deliver anything meaningful going forward' he said.
Equities suffered from fatigue after markets had risen in anticipation of the Fed move while the price of oil was driving investor sentiment on concerns over global growth and a growing supply surplus.
'We had a couple of strong days as a result of the Fed' said Andrew Wilkinson chief market strategist at Interactive Brokers LLC in Greenwich Connecticut.
'The market is getting sucked into a fear trade' he said. It's really oil is it a glut or a global slowdown? But I don't think it's symbolizing a slowdown in the global economy.'
MSCI's all-country world stock index fell 0.74 percent while the FTSEurofirst 300 index of leading European share dropped 0.98 percent to 1420.038.
On Wall Street the Dow Jones industrial average fell 186.7 points or 1.07 percent to 17309.14.
The S&P 500 slid 15.45 points or 0.76 percent to 2026.44 and the Nasdaq Composite lost 21.57 points or 0.43 percent to 4980.99.
Treasury prices rose. The benchmark 10-year US Treasury note rose 9/32 in price to yield 2.2058 percent.
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