{"id":120954,"date":"2018-02-05T07:15:57","date_gmt":"2018-02-05T12:15:57","guid":{"rendered":"http:\/\/countingpips.com\/?p=120954"},"modified":"2018-06-01T15:43:44","modified_gmt":"2018-06-01T15:43:44","slug":"us-stocks-slump-on-faster-rate-hikes-concerns","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/02\/us-stocks-slump-on-faster-rate-hikes-concerns\/","title":{"rendered":"US stocks slump on faster rate hikes concerns"},"content":{"rendered":"
February 5, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

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US stock indices log worst weekly losses in two years<\/h2>\n<\/div>\n<\/div>\n

US stock indices\u00a0<\/b>slumped but dollar rallied on Friday as bigger than expected increase in January nonfarm payrolls stoked concerns Federal Reserve may fasten the pace of rate hikes. The\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, rose 0.6% to 89.155 Friday.\u00a0S&P 500<\/a>\u00a0fell 2.2% to 2762.13 led by 4.5% loss in energy shares. The US broad market index fell 3.9% for the week.\u00a0Dow Jones<\/em>industrial average sank 2.5% to 25520. The\u00a0Nasdaq\u00a0<\/em>composite fell 2% to 7240.95. Futures on indices indicate lower opening today.<\/p>\n

\"SP500\"<\/p>\n

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Investors are concerned lawmakers may not agree on immigration deal which is the contentious issue in budget negotiations. In case no agreement is reached by 12:00 a.m. EST Saturday the government\u2019s funding will expire. The House passed a one-month short term spending bill Thursday that would keep the government funded through February 16 but the bill doesn\u2019t have enough support to clear the Senate. Economic data were mixed: weekly initial jobless claims sank 41,000 to 220,000, US housing starts fell 8.2% in December while home builder permits were flat in December.<\/p>\n<\/div>\n<\/div>\n

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German DAX 30 leads European indices lower<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>retreated for a fifth straight session on Friday after Deutsche Bank posted a bigger than expected loss in the fourth quarter. Both the\u00a0euro\u00a0<\/em>and\u00a0British Pound\u00a0<\/em>turned lower against the dollar. The Stoxx Europe 600 index fell 1.4% posting 3.1% loss for the week. The\u00a0DAX 30\u00a0<\/em>slumped 1.7% to 12785.16. France\u2019s\u00a0CAC 40\u00a0<\/em>fell 1.6% and UK\u2019sFTSE 100\u00a0<\/a>lost 0.6% to 7443.43. Markets opened 0.8%-1.1% lower today.<\/p>\n

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Market sentiment was boosted by the report the world\u2019s second-largest economy grew 6.9% in 2017, above an expected 6.8% rate and the first year on year growth since 2010. China is the EU\u2019s second-largest trading partner. And a report forecasting that US shipments of chips will reach $50.1 billion in 2021 supported chip maker shares.<\/p>\n<\/div>\n<\/div>\n

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Nikkei leads Asian markets lower<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly lower today as investors turned cautious on prospect of faster tightening of Fed monetary policy after better than expected US jobs report.\u00a0Nikkei\u00a0<\/em>ended 2.5% lower at 22686 as yen resumed strengthening against the dollar. Chinese stocks are mixed: the\u00a0Shanghai Composite Index\u00a0<\/em>is up 0.7% while Hong Kong\u2019sHang Seng\u00a0<\/em>Index is 1.1% lower. Australia\u2019s All Ordinaries Index is down 1.6% despite continued Australian dollar weakness against the greenback.<\/p>\n

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Brent\u00a0<\/a>extends losses<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are edging lower today following Friday sell-off on higher US output data. Prices fell Friday on rising US domestic output concerns after US Energy Information Administration report indicated US oil production exceeded 10 million barrels a day in November for the first time in nearly 50 years. April Brent fell 1.5% to $68.58 a barrel on Friday. It lost 2.2% in the week.<\/p>\n

\nMarket Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets US stock indices log worst weekly losses in two years US stock indices\u00a0slumped but dollar rallied on Friday as bigger than expected increase in January nonfarm payrolls stoked concerns Federal Reserve may fasten the pace of rate hikes. The\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-120954","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=120954"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120954\/revisions"}],"predecessor-version":[{"id":120961,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120954\/revisions\/120961"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=120954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=120954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=120954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}