However, the lack of an indication over a future rate cut was enough to give the United Kingdom banks a boost, with Royal Bank of Scotland the biggest riser, jumping more than 2% or 4.6p to 206.7p.
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Hong Kong was the sole gainer among major Asia ex-Japan markets, with shares up 1.4%, extending their weekly advance to 4.2%, the most in nearly two months. Eastern time. The Standard & Poor’s 500 index slid 33 points, or 1.5 percent, to 2,147.
Phone and utilities stocks, which investors have sought out this year for their high dividends, fell far more than the rest of the market.
Most of the big gainers were oil production and drilling companies, which got a boost from a report indicating fuel stockpiles fell precipitously last week.
The Australian stock market is extending losses from the previous session.
ROUGH REPORT: Pier 1 Imports tumbled 14.8 percent after the home decor retailer gave weak quarterly guidance and said its president and CEO will be leaving the company at the end of the year by mutual agreement with the board. The Kospi index fell 1.3 percent.
The sell-off in technology stocks weighed on the Nasdaq composite index, which fell 24.44 points, or 0.5 percent, to 5,259.48. They S&P 500 also had its worst week since early February.
In the currency market, the Australian dollar is lower against the USA dollar on Friday. And the Dow and S&P 500 hit new highs last month. Investors were weighing the likelihood that the Federal Reserve will raise its key interest rate this year, following remarks by a Fed bank president.
Wall Street stocks were also hit after Boston Federal Reserve President Eric Rosengren said “risks to the forecast are becoming increasingly two-sided”, meaning that while a slowdown overseas remains a concern, the US economy has proved resilient and could even overheat if Fed policy remains unchanged for too much longer.
THE QUOTE: “If the ECB saw the world going to hell in a hand basket, they would have made a move (for additional stimulus)”, said Erik Davidson, chief investment officer for Wells Fargo Private Bank. “But September can not be ruled out at this point”. The yield on the 10-year Treasury rose to 1.60 percent from 1.54 percent late Wednesday. As yields rise, bonds become more competitive options for investors seeking income. Digital Realty Trust lost $3.02, or 3 percent, to $97.45.
ENERGY: Oil prices closed lower after rallying a day earlier. Benchmark U.S. crude was up $1.67, or 3.6 per cent, to $47.15 a barrel in NY.
Crude oil prices surged Thursday, powered by a report showing the largest drawdown in US crude oil inventories since 1999.
Several oil drilling and production companies rose on the latest oil stockpiles figures, pushing the S&P 500’s energy sector up 1.7%. Enterprise was down 34 cents, or 1.2 percent, at $26.92. US stocks have been trading in a tight range recently as there is no clear evidence whether the US Fed is to hike the rates on September meeting. Diamond Offshore Drilling climbed 9% to $17.40. The stock added $3.02 to $17.25. While the U.K.’s FTSE 100 Index edged up by 0.2 percent, the French CAC 40 Index dipped by 0.3 percent and the German DAX Index dropped by 0.7 percent.
North Korea conducted its fifth and biggest nuclear test on Friday and said it had mastered the ability to mount a warhead on a ballistic missile, ratcheting up a threat that its rivals and the United Nations have been powerless to contain. Chinese shares in Hong Kong rose for a seventh day, increasing 0.5 percent.
KEEPING SCORE: Japan’s benchmark Nikkei 225 rebounded from an initial drop to finish little changed at 16,965.76. Southwestern Energy climbed 65 cents, or 4.5 percent, to $15.07. Heating oil rose 6 cents, or 3.9%, to $1.48 a gallon. Intel slipped 2 cents to 36.44 dollars (£27.39). United States gold futures slid to $1,340.60. Copper held steady at $2.10 a pound.
In currency markets, the dollar rose to 102.70 yen from 102.49 on Thursday.
However, sterling was down 0.2% against the United States dollar at 1.326 U.S. dollars after the greenback strengthened following comments from Boston Federal Reserve president Eric Rosenberg indicating that a USA rate hike might not be far away. Get twice-daily updates on what the St. Louis business community is talking about.
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