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Equities - Weekly outlook: May 27 - 31

Published 05/26/2013, 10:25 AM
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Investing.com - U.S. stocks were little changed at the close on Friday and posted the first weekly decline since mid-April as uncertainty over an earlier-than-expected end to the Federal Reserve’s easing program hit market sentiment.

The Dow Jones industrial average edged up 0.06% and ended the week 0.30% lower. The S&P 500 dipped 0.06%, and was 1.1% lower for the week. The Nasdaq edged down 0.01%, and also ended the week down 1.1%.

Investors shrugged off data on Friday showing that U.S. durable goods orders rose 3.3% in April, outstripping expectations for a 1.5% increase.

Investors weighed the possibility that the Fed’s USD85 billion-dollar-a-month asset purchase program could be scaled back later this year after Chairman Ben Bernanke said Wednesday that a decision could be taken in the "next few meetings."

The comments came during testimony on the economy and monetary policy to the U.S. Joint Economic Committee in Washington.

Earlier Wednesday, Bernanke said in prepared remarks that a premature tightening of monetary policy carried substantial risks to the economic recovery.

Meanwhile, Wednesday’s minutes from the Fed’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.

In Europe, the benchmark Stoxx Europe 600 was down 0.2% on Friday. Germany's DAX was down 0.56% despite stronger-than-forecast data on German business sentiment.

France's CAC 40 lost 0.26%, while Britain's FTSE 100 closed down 0.63%.

In Asia, Japan’s Nikkei ended 0.9% higher in whipsaw trade, which saw the index rise as much as 3.6% and fall as much as 3.5% during the session. On Thursday, the index tumbled 7.3%, the largest one day decline in over two years.

China's Shanghai Composite was up 0.6%, while Australia’s S&P/ASX 200 Index fell 1.6%, extending the week’s losses to 3.8%.

Elsewhere, oil prices ended the week lower with contracts for July delivery settling at USD93.84 a barrel, down 0.45% for the week and 2.55% lower for the week.

Gold was modestly lower on Friday, with futures for June delivery sliding 0.5% to USD1,387.50 a troy ounce.




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