By IFCMarkets
US stocks fell on Thursday as Apple stocks declined after the release of new iPhone 7 which failed to impress the markets, but the decline was limited by gains in energy sector. Apple stocks retreated 2.5% to $105.71, their record daily fall since Brexit which triggered massive sell-off in financial markets. Apple decided not to reveal the first-weekend sales data on new device as it may affect the markets. S&P 500 tech index lost 0.9% leading the sectorial decliners. All three major US indices suffered losses on Thursday. S&P 500 index dipped 0.2% to 2,181.78. Dow Jones industrial average fell 0.23% to 18,482.79. Nasdaq lost 0.45% to 5,260.40 after 4 days of gains. US dollar index, a measure of a greenback’s value against a basket of six major currencies, rose 0.1%. US stocks have been trading in a tight range recently as there is no clear evidence whether the US Fed is to hike the rates on September meeting. The payrolls data last Friday and service sector data this week fell short of expectations. The trading volume in the US exchanges was 6.8bn on Thursday which is above the 6.0bn average for the latest 20 trading days.
European stocks are retreating today on Friday on weak performance of healthcare stocks and news North Korea held some nuclear tests overnight. STOXX Healthcare index lost 0.9%. Pan-European STOXX EUROPE 600 reached an 8-month high this week but then bounced down as markets fell short of expectations ECB would expand monetary stimulus. On its meeting on Thursday September 8 ECB lest the interest rates unchanged and did no expand monetary stimulus program. EURUSD was last traded at $1.1280, 0.2% up but firm after the ECB decision to leave the monetary policy parameters unchanged. The ECB President Mario Draghi said the further expansion of QE-program was not even on the table. UK stocks edged lower after EBC meeting with FTSE 100 index 0.1% down to 6,850.48. The top performer was the banking sector with Royal Bank of Scotland up by 1.7% and Barclays up by 3% as banks benefit from ECB inaction in expanding monetary stimulus. Lower rates reduce the profitability of the banks. German DAX 30 lost 0.4% and French CAC 40 fell 0.3% on Friday.
Asian stocks fell after news came out that North Korea conducted nuclear tests early on Friday. Nikkei closed little changed at 16,965.76 in a choppy trade on Friday as markets are cautious about Fed rate hike and further monetary stimulus from BoJ. USDJPYlost 0.4% to 103.12 yen today having lost 1.8% this week. Analysts expect the dollar to trade against the yen at 104-105 ahead of BoJ and US Fed meetings this month. China’s CSI 300 index lost 0.6% to 3,318.04 while Shanghai Composite index also fell 0.6% to 3,078.85.Chinese stocks slid on Friday on weak August inflation data (inflation slowed down in August to the lowest in a year) which gives no ground for further monetary easing.
Oil futures prices were falling on Friday although are on track to close this week higher. Both Brent and WTI futures added 6% which week. Today London Brent crude futures for November delivery lost 52 cents to $49.47 a barrel.
Gold is declining on Friday as US dollar rebounds. Spot gold price is 0.2% lower at $1,335.90 per ounce. US gold futures slid to $1,340.60. Holdings of world’s largest gold-backed ETF SPDR Gold Trust fell on Thursday 0.13% to 950.62 tonnes. Analysts expect the gold prices to be strongly negatively correlated with US dollar till Fed September meeting where the Fed decision on interest rates will come out.
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Silver lost 0.7% on spot market to $1,079.90 an ounce.
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