Global stocks lower, except for Tokyo, on Yellen speech

A woman takes a picture of an electronic stock board of a securities firm in Tokyo, Monday, Aug. 29, 2016. Most Asian stocks slipped Monday on remarks from the U.S. Federal Reserve late last week that the case has strengthened for raising interest rates, but the Tokyo market was an exception and gained on prospects for a strong dollar. (AP Photo/Koji Sasahara)
A man walks by an electronic stock board of a securities firm in Tokyo, Monday, Aug. 29, 2016. Most Asian stocks slipped Monday on remarks from the U.S. Federal Reserve late last week that the case has strengthened for raising interest rates, but the Tokyo market was an exception and gained on prospects for a strong dollar. (AP Photo/Koji Sasahara)

TOKYO — Most global stocks slipped Monday after the head of the U.S. Federal Reserve late last week said the case had strengthened for raising interest rates. The Tokyo market was an exception and gained on prospects for a strong dollar.

KEEPING SCORE: France's CAC 40 lost 0.9 percent to 4,401, while Germany's DAX fell 0.7 percent to 10,513. The London Stock Exchange was closed for a summer bank holiday. U.S. shares were set for a modest open, with Dow and S&P 500 futures unchanged.

FED FACTOR: Fed Chair Janet Yellen made comments Friday that were bullish on the economy but gave no timetable for future rate increases. That increased speculation that an interest rate increase is more likely this year. Low interest rates in recent years are credited for helping stock markets hit record highs, so the prospect of higher rates set off worries among some investors.

THE QUOTE: "The dollar jumped after the Federal Reserve's chairperson, Janet Yellen, signaled an impending rate hike in a speech at Jackson Hole last Friday," said Margaret Yang Yan, market analyst at CMC Markets Singapore. "While the rate hike has not yet happened, markets have already begun to move and shift with the assumption of a hike."

ASIA'S DAY: Japan's benchmark Nikkei 225 added 2.3 percent to close at 16,737.49. Japanese stocks generally gain on a weak yen because the earnings of the nation's giant exporters are boosted. South Korea's Kospi fell 0.3 percent to 2,032.35. Hong Kong's Hang Seng slipped 0.4 percent to 22,821.74, while the Shanghai Composite inched down 0.01 percent to 3,070.03.

ENERGY: Benchmark U.S. crude oil fell 64 cents to $47.00. It had risen 31 cents on Friday. Brent crude, used to price oil internationally, lost 69 cents to $49.23.

CURRENCIES: As currencies tend to rise as interest rates increase, the dollar jumped on Yellen's comments. It rose to 102.21 yen from 100.51 late last week in Asia. The euro fell to $1.1177 from $1.1289.

___

Follow Yuri Kageyama on Twitter at https://twitter.com/yurikageyama

Her work can be found at http://bigstory.ap.org/content/yuri-kageyama

People also read these

Crews to retrieve plane from lake; 2 men still missing

Aug 29, 2016

Authorities say that a small plane that crashed in Lake Pontchartrain in New Orleans had been chartered by a couple taking an aerial tour of the city

Global stocks rise as investors weigh future of US rates

Aug 30, 2016

Global stock markets mostly rose on Tuesday as investors weighed the possibility and timing of another U.S. interest rate increase this year

Australian man with British title to stay jailed in Vegas

Aug 31, 2016

A judge has ordered an Australian man who claims to hold a British royal title jailed in Las Vegas until at least until next month pending the resolution of multiple felony charges against him

Walk The Biz welcomes all casual and easygoing readers who seeks to digest business travel to international trade policy to starting in the transportation & shipping industry.

Contact us: sales@walkthebiz.com

Subscribe to our newsletter now!

Name:

Email: