· The US-based equity funds witnessed more than $8.4 billion of cash withdrawals in the week ended Wednesday, according to Refinitiv's Lipper.
The withdrawals have come ahead of next week's Federal Reserve meeting. The central bank is widely expected to cut rates by 25 basis points. The move has been priced in and the outflow of funds from equities indicate the market may see "sell the fact" action following a rate cut on July 31.
· European stocks were marginally higher Friday morning, after the European Central Bank (ECB) suggested it could lower borrowing costs to tackle a slowdown in the euro zone economy.
The pan-European Stoxx 600 was up around 0.1% during early morning deals, with most sectors and major bourses in positive territory.
The ECB held interest rates steady on Thursday, but outgoing President Mario Draghi all but pledged to ease monetary policy further as the growth outlook deteriorates.
Speaking to reporters at a press conference Draghi said the economic outlook was “getting worse and worse,” citing a weak manufacturing sector as well as uncertainty over trade and Brexit.
· Asian share prices dropped on Friday following mixed U.S. earnings reports and after the European Central Bank disappointed those investors who had expected an immediate easing while the euro held above two-year lows struck overnight.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dropped 0.53% while Japan's Nikkei .N225 lost 0.58%. Shanghai shares .SSEC ticked down 0.16%.
Uncertainties over whether Washington and Beijing will be able to settle gaping differences over trade, technology and even geopolitical ambitions, kept many investors on guard. Negotiators from the two sides will meet in Shanghai next week.
· Japan’s Nikkei lost traction on Friday on downbeat earnings both at home and on Wall Street, erasing some of the previous day’s advance which had pushed the benchmark to a 2-1/2-month peak.
The Nikkei share average ended the day down 0.45% at 21,658.15. The index had risen to 21,823.07 the previous day, its highest since May 7.
All of Wall Street’s three main indexes fell from record highs on Thursday following a flurry of downbeat quarterly results from Ford Motor and other companies and after European Central Bank chief Mario Draghi’s comments disappointed investors hoping for a more dovish stance on monetary policy.
· China’s major stock indexes climbed on Friday to end the week higher, led by gains in tech firms, as investors cheered a revival in trade hopes and Beijing’s continued tech push.
The blue-chip CSI300 index ended up 0.2% at 3,858.57 points, while the Shanghai Composite Index added 0.2% to 2,944.54 points, both up for a fourth consecutive session.
Investor focus was on the development in Sino-U.S. trade negotiations.
Reference: CNBC, Reuters
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