People walk past an electronic stock board of a securities firm in Tokyo Friday, Dec. 11, 2015.
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The news release and oil price drop hit after markets closed in Asia, but Europe’s stocks pulled back sharply.
The loonie was down 0.18 of a cent at 73.18 cents US after the International Energy Agency said Friday that demand for oil will continue to grow next year but more slowly – by 1.2 million barrels per day, down from 1.8 million bpd this year.
In the preceding five weeks through October 29, about 5.2 percent of energy shares were on loan on average, against 3 percent for the S&P 500.
Major US indices have had a bruising week as a rout in oil prices made investors worry about economic growth. The stock fell 3 percent.
Stock futures point to a slightly higher open amid continued uncertainty around the energy sector and the Fed’s decision on interest rates next week; Dow +0.1%, S&P +0.2%, Nasdaq +0.3%. The S&P 500 lost 39.86 points, or 1.94 per cent, to 2,012.37 and the Nasdaq Composite dropped 111.71 points, or 2.21 per cent, to 4,933.47.
The materials index was also down 1.62 percent, weighed down by DuPont and Dow.
In economic news, the Commerce Department reported that USA retail sales rose 0.2 per cent in November, indicating that holiday shopping south of the border is off to a solid if unspectacular start.
Meanwhile, traders were looking ahead to the weekend for a number of monthly reports, including retail sales and industrial production.
Dow Chemical ended 2.8 per cent lower and Dow member DuPont gave up 5.5 per cent.
Investors are also keeping an eye on United States data, which could cement expectations that the Fed is gearing up to hike rates at its December 15-16 meeting. A report on foreign direct investment in China is due on Wednesday.
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ASIA’S DAY: Japan’s benchmark Nikkei 225 index climbed 1 percent to close at 19,230.48 after the yen failed to hold on to the previous day’s gains. The iShares iBoxx $ High Yield Corporate Bond exchange-traded fund (HYG) dropped 2%. The U.S. central bank is widely expected to announce the first increase in interest rates, commonly referred to as liftoff, since the Great Recession. The latest figures will provide an update on the world’s second biggest economy, which is struggling with a stubborn downturn. While the German DAX Index has plunged by 2.5%, the UK’s FTSE 100 Index and the French CAC 40 Index are down by 2.1% and 2%, respectively. (ADBE) rallied 3% after the software company posted better-than-expected quarterly results (http://www.marketwatch.com/story/adobe-shares-rally-as-earnings-beat-wall-streets-expectations-2015-12-10) late Thursday. The euro strengthened to $1.0966 from $1.0939. On the Nasdaq, 1,944 issues fell and 372 advanced.
