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Daily Review 12.09.2016
 

US equities down as hopes on Fed rate hike lift, North Korea nuke test scares

Wall Street’s three major stocks indices posted their worst performance in a day since two months as chances of possible rate hike from Federal Reserve toughen and nuclear test by North Korea sow fear for investors on Friday trading.

The chief market strategist at Wunderlich Securities said that the Fed is clearly on track to increase rates this year but weighing on the time whether to impose it on September or December.

But the positive remark on the rate hike brought nightmares to US stocks as each closed on a bearish tone last week.

The Dow Jones industrial average pared loss of near 400 points, or 2.13% to close at 18 085.45, its biggest drop since June 24. The decline was spurred by major losses from 3M and Boeing.

The S&P 500 logged to its largest drop since February as it shed 53.49 points, or 2.45%, to settle at 5 125.91 while the NASDAQ composite was subdued by 133.58 points , or 2.54 points to finish at 5 125.91.

Dollar surges after Fed’s hawkish commentary

US dollar finished impressively higher on Fridays as comments from Federal Reserve policymakers added hopes to investors’ expectations on potential interest rate hike.

The dollar index, which measure the US currency against basket of major currencies was up 0.35% and was last trading at 95.366.

The euro was down 0.4% at 1.1216 against the greenback, prompted by euro trade surplus data of Germany that recorded 19.4 billion, falling short of 22 billion euro expectations.

Against the Japanese yen, it was up 0.2%, closing at 102.65 while 1.2% stronger versus Russian ruble at 64.7374.

The Korean won finished down 0.4% at 1 103.54 per dollar amid the move of the Bank of Korea to hold interest rates at 1.25%.

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