USA stocks have turned mainly lower, from a positive opening, after US Federal Reserve Chair Janet Yellen said the central bank could lift interest rates at its December meeting. This trend is likely to continue next year, the report says, with further growth in office rents in core areas. The euro weakened to $1.0930 from $1.0961.
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However, while Yellen hinted again at the possibility of rate hike before the end of the year, analysts insisted the Fed’s decision could still be influenced by the economic data released over the next month.
“All the sellers who needed to sell have”, said Francis Cheung, a senior strategist at CLSA Ltd in Hong Kong. “The government has successfully clamped down on short selling”.
Shares in the region started the day broadly higher, after signals the European Central Bank stands ready to take more accommodative action (http://www.marketwatch.com/story/draghi-ecb-ready-to-act-on-low-inflation-risks-2015-11-03-154854328). He said he favoured interest-rate sensitive sectors such as banks, property and Internet companies.
LONDON – A plunge of almost 10 per cent in Volkswagen shares as the pollution scandal dogging the carmaker expanded to petrol engines has pulled down Frankfurt’s stock market despite the prospect of additional monetary stimulus.
Elsewhere, Australia’s S&P/ASX 200 edged up 0.1%, as signs of weakness in parts of the local economy offset a rally in energy stocks, which gained after an overnight surge in oil prices. If the rumors were to be true, this would be another major blow for the German carmaker, as the recently appointed CEO Matthias Mueller, promoted to the top job at VW after leading the Porsche division for years, would prove not to be the drastic change in management through which the firm hopes to regain a few credibility. Japan’s Nikkei 225 rose 1 percent to 19,116.41. The investment company announced on Tuesday that it has received an offer of 30 cents per share for a buyout and delisting. Shipbuilders Hyundai Heavy Industries, Daewoo Shipbuilding and Samsung Heavy Industries lost 2-4 percent, while market heavyweight Samsung Electronics gained 0.9 percent. Malaysia’s ringgit led a decline among emerging Asian currencies.
The Stoxx Europe 600 was 0.6% higher in early trade. China’s yuan slipped 0.2 per cent, the most in a week, in offshore trading.
It points out that more residential properties are scheduled to complete next year, which will impose further pressure on luxury home rents and prices.
The Dow Jones industrial average lost 33 points, or 0.2 percent, to 17,881 as of 10:50 a.m. Eastern.
A Treasury sale of two-year notes yesterday drew the weakest demand for the issue since 2010.
IN FASHION: Michael Kors Holdings, the clothing and handbag company owned by its namesake designer, rose $4.69, or 12 percent, to $44.03 after the company reported revenue and profits in the latest quarter that were stronger than analysts expected.
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Japan’s Topix index rose 0.9 percent as markets in Tokyo resumed trading following a holiday on Tuesday. Supply constraints among OPEC members and declining rig counts underpin his case for gains, he said.
