Investing.com - U.S. stocks were lower on Friday as concerns that the Federal Reserve may start to phase out its asset purchase program as soon as next month hit market sentiment.
The Dow Jones industrial average slid 0.20% and ended the week 2.2% lower, the worst weekly performance this year. The S&P 500 was down 0.33%, leaving it 2.1% lower for the week. The Nasdaq dipped 0.08% on Friday to end the week 1.6% lower.
U.S. equities markets were hit by ongoing speculation over how soon the Federal Reserve will start to phase out its bond buying program. Fed Chairman Ben Bernanke has said that the decision to begin tapering the bank’s USD85 billion-a-month asset purchase program will depend on whether economic data is strong enough.
Expectations that the Fed may begin tapering as soon as September were boosted on Thursday after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
Investors will be looking ahead to Wednesday’s minutes of the Federal Reserve’s most recent meeting, while U.S. data on initial jobless claims and the housing sector will also be closely watched this week.
In Europe, stocks were boosted by indications that the outlook for the euro zone is improving after data earlier in the week showed that the region’s economy returned to growth in the second quarter, emerging from an 18-month recession.
Germany’s DAX was up 0.19% on Friday, while France’s CAC gained 0.75% and Britain's FTSE 100 rose 0.26%.
In Asia, Japan’s Nikkei was down 0.75% at the close and ended the week 0.30% higher. Elsewhere, the Hang Seng 40 slipped 0.10%, while China’s Shanghai Composite was 0.6% lower at the close after spiking 5.6% in early trade, due to a trading error.
Gold futures rallied to an eight-week high on Friday, with gold futures for December delivery jumping 1.15% to USD1,376.30 a troy ounce at the close.
Oil prices ended the session at a two-week high, as ongoing violence in Egypt fuelled concerns over a disruption to supplies from the Middle East, with crude futures for delivery in October edging up 0.1% to settle at USD107.29 a barrel.
The Dow Jones industrial average slid 0.20% and ended the week 2.2% lower, the worst weekly performance this year. The S&P 500 was down 0.33%, leaving it 2.1% lower for the week. The Nasdaq dipped 0.08% on Friday to end the week 1.6% lower.
U.S. equities markets were hit by ongoing speculation over how soon the Federal Reserve will start to phase out its bond buying program. Fed Chairman Ben Bernanke has said that the decision to begin tapering the bank’s USD85 billion-a-month asset purchase program will depend on whether economic data is strong enough.
Expectations that the Fed may begin tapering as soon as September were boosted on Thursday after the Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell to the lowest level since January 2008 last week, dropping by 15,000 to 320,000.
Investors will be looking ahead to Wednesday’s minutes of the Federal Reserve’s most recent meeting, while U.S. data on initial jobless claims and the housing sector will also be closely watched this week.
In Europe, stocks were boosted by indications that the outlook for the euro zone is improving after data earlier in the week showed that the region’s economy returned to growth in the second quarter, emerging from an 18-month recession.
Germany’s DAX was up 0.19% on Friday, while France’s CAC gained 0.75% and Britain's FTSE 100 rose 0.26%.
In Asia, Japan’s Nikkei was down 0.75% at the close and ended the week 0.30% higher. Elsewhere, the Hang Seng 40 slipped 0.10%, while China’s Shanghai Composite was 0.6% lower at the close after spiking 5.6% in early trade, due to a trading error.
Gold futures rallied to an eight-week high on Friday, with gold futures for December delivery jumping 1.15% to USD1,376.30 a troy ounce at the close.
Oil prices ended the session at a two-week high, as ongoing violence in Egypt fuelled concerns over a disruption to supplies from the Middle East, with crude futures for delivery in October edging up 0.1% to settle at USD107.29 a barrel.