· Stocks fell on Thursday as investors worried that the Federal Reserve will not be as dovish as expected in its monetary policy announcement next week following strong economic data and remarks from the top European Central Bank official.
The Dow Jones Industrial Average closed 128.99 points lower, or 0.5%, at 27,140.98. The S&P 500 also pulled back 0.5% to close at 3,003.67. The Nasdaq Composite lagged, sliding 1% to 8,238.54. Both the S&P500 and Nasdaq hit record highs in the previous session.
Fed expectations were also dinged after ECB President Mario Draghi said there was not a significant risk of a recession in the region. Some traders took this to mean the central bank would not be as aggressive in its easing measures and that the Fed could follow suit. The Fed is scheduled to meet Tuesday and Wednesday.
· European stocks fluctuated Thursday afternoon but ended lower after the European Central Bank ECB kept interest rates on hold but signaled that more monetary easing could be on the horizon.
The pan-European Stoxx 600 clkosed provisionally down by 0.5% during trade, with most sectors and major bourses in negative territory.
· Stocks in Asia traded lower Friday morning, amid expectations the U.S. Federal Reserve could be less aggressive than expected with monetary policy when it meets next week.
The Nikkei 225 in Japan slipped 0.35% in early trade, as shares of index heavyweight Softbank Group rose 0.77% after the conglomerate announced that it will set up Vision Fund 2, the sequel to its landmark investment fund. The Topix index declined 0.41%
Shares of automaker Nissan Motor dropped more than 2%, after the company announced Thursday it would slash 12,500 jobs worldwide following a 95.5% drop in its first-quarter operating profit.
In South Korea, the Kospi declined 0.45%. Australia’s S&P/ASX 200 also shed 0.38% as most of the sectors fell.
Overall, the MSCI Asia ex-Japan index slipped 0.21%.
Meanwhile, investors await market reaction in Hong Kong when it opens at 9:30 a.m. HK/SIN, after the city reported that it saw its biggest annual drop in exports in almost three and a half years in June.
Reference: CNBC
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