Global Stocks Slip Lower, With Focus on Fed, ECB Policy
November 30 2015 - 3:40AM
Dow Jones News
Global stocks were slightly lower Monday as investors awaited
key economic releases and further clarity from central banks later
in the week.
The Stoxx Europe 600 was down 0.5% in early trade amid losses in
the energy and basic resource sectors.
The pan-European index inched slightly higher last week as
investors shrugged off political risks to bet the European Central
Bank would further loosen monetary policy at its meeting on Dec.
3.
In Asia, the Shanghai Composite Index was up 0.3%, reversing
sharp losses earlier in the session. The index had fallen 5.5% on
Friday as a probe into brokerages weighed on November gains.
Japan's Nikkei Stock Average and Australia's S&P/ASX 200
were both down 0.7%.
Wall Street closed early Friday in light trade, with the Dow
Industrials losing less than 0.1%.
Investors globally are focused on the divergent policies between
U.S. and European central banks.
The Federal Reserve is widely expected to raise benchmark
interest rates at its meeting in mid-December for the first time in
nine years. The ECB may drive rates further into negative
territory, raising the cost for banks of storing cash with the
central bank to the point where they will instead opt to put it to
work in the riskier private sector, boosting the European
economy.
"It is extremely rare that the two most important central banks
are moving in opposite directions," Han de Jong, chief economist at
ABN Amro, wrote in a note. Given that the moves have been well
telegraphed, "we are assuming financial markets will respond
calmly, but there is a risk of rising volatility," he said.
On Friday, the WSJ Dollar Index, which tracks the dollar's value
against 16 currencies, hit a 13-year high.
By Monday, the euro was down slightly against the dollar at
$1.0588, while the dollar was up against the yen at ¥ 122.8190.
In commodities, gold was up 0.4% at $1,056 an ounce after
hitting a six-year low in Asia on the prospect of higher U.S.
interest rates and a stronger dollar.
Among blue-chip stocks, shares in BHP Billiton Ltd. were down 4%
amid worries about the impact of the massive tailings-dam failure
in Brazil earlier this month. Glencore was also down 1.7% amid a
broader fall in basic resources stocks.
Write to Riva Gold at riva.gold@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 30, 2015 04:25 ET (09:25 GMT)
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