By IFCMarkets
US stock market resumed the pullback on Friday as weaker than expected corporate reports cast doubt on companies ability to charge higher prices while their labor costs rise. S&P 500 fell 1.7% to 2658.69, closing 3.9% lower for the week. Dow Jones industrial average lost 1.2% to 24688.31. Both the SP 500 and Dow moved into negative territory for 2018. The Nasdaq dropped 2.1% to 7167.21. The dollar strengthening reversed despite report US economic growth in third quarter slowed less than expected: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slid 0.3% to 96.324 but is higher currently. Futures on stock indices point to higher openings today.
European stocks retreat continued on Friday after a rebound in previous session. Both the EUR/USD and GBP/USD turned higher and are up currently. The Stoxx Europe 600 Index fell 0.8%, booking 2.5% loss for the week. The DAX 30 lost 0.9% to 11200.62. France’s CAC 40 dropped 1.3% and UK’s FTSE 100 retreated 0.9% to 6939.56. Indices opened 0.2% – 0.8% higher today.
Asian stock indices are mostly lower today led by Chinese stocks. Nikkei lost 0.2% to 21149.80 despite yen turn lower against the dollar. Chinese stocks accelerated their slide as profit growth at industrial firms slowed for the fifth consecutive month in September: the Shanghai Composite Index fell 2.2% while Hong Kong’s Hang Seng Index is 0.5% higher. Australia’s All Ordinaries Index extended gains 1.1% despite Australian dollar continued climb against the greenback.
Brent futures prices are edging lower today as financial market turmoil spur global growth slowdown concerns. Prices gained on Friday despite Baker Hughes report that the number of active US rigs drilling for oil rose for a third week, by 2 to 875 last week: Brent for December settlement rose 1% to close at $77.62 a barrel Friday, falling 2.7% for the week.
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