Global Markets Head Lower
August 31 2015 - 7:00AM
Dow Jones News
Global stock markets headed lower at the end of a turbulent
month that was dominated by concerns over China and the timing of
the U.S. Federal Reserve's future interest rate rise.
The pan-European Stoxx Europe 600 index was 0.2% lower Monday in
early trade, dragged down by a 0.7% decline in Germany's DAX and a
0.8% fall in France's CAC 40. The U.K.'s FTSE 100 was closed for a
public holiday.
In Asia, the Shanghai Composite Index closed 0.8% lower. Japan's
Nikkei 225 index fell 1.3%. Hong Kong's Hang Seng Index was 0.3%
higher.
Asian stocks were on course to end August with their worst
monthly performance in more than three years. The Shanghai
Composite has had three straight months of declines.
The losses came after growing fears over China's slowing
economy, fueled by a surprise devaluation in the Chinese yuan
earlier in the month. Asian currencies remain near multiyear
lows.
The malaise spread to bourses in Europe and the U.S., which have
seen large price swings in recent weeks.
Concerns over the timing for the Fed's rate rise, which most
economists expected in September before the recent selloff, have
also set investors on edge.
Comments from U.S. Federal Reserve officials suggested at the
annual Jackson Hole conference in Wyoming over the weekend that the
Fed was sticking to its plans to raise interest rates later this
year for the first time in almost a decade.
Fed Vice Chairman Stanley Fischer's remarks that the Fed
shouldn't wait until inflation returned to 2% before beginning to
raise interest rates "likely led to markets pricing a higher
probability (now 32%) of a Fed move next month," said Barclays
strategist Krishna Goradia in a note Monday.
The euro was up 0.4% against the U.S. dollar at $1.222.
Brent crude was down 1.5% $49.33 a barrel. Oil sold off heavily
last week before rebounding sharply at the end of the week. Gold
was down 0.1% at $1133.90 a troy ounce.
Write to Christopher Whittall at
christopher.whittall@wsj.com
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(END) Dow Jones Newswires
August 31, 2015 06:45 ET (10:45 GMT)
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