In Asia, shares were trading mixed on Friday in morning session after most local markets remained relatively flat throughout the week as traders waited for clues about U.S. interest rates from Jackson Hole.
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The Dow Jones industrial average fell 33.07 points, or 0.2 percent, to 18,448.41.
Not all Fed policymakers are on board for a rate hike soon; Chicago Fed President Charles Evans, who is at Jackson Hole for the conference but is not doing TV interviews, has long called for patience in raising rates so as to give inflation a better chance of reaching the Fed’s 2-percent target sooner.
However, for US Dollar bulls, tomorrow’s speech by Fed Chair Janet Yellen at the Jackson Hole Economic Policy Symposium may prove to be a disappointment.
Many analysts, including David Jones, chief economist at DMJ Advisors, said the recent remarks by Fed officials could be seen as increasing the likelihood of a September rate hike.
Japan’s Nikkei.N225 extended losses to close down 1.2 percent, bringing declines for the week to 1.1 percent.
In Hong Kong, the Hong Kong Index added 0.72%, while China’s Shanghai Composite Index rose 0.22%. “It was a substantive conversation, and they said they would consider our proposals”.
The waiting game left many markets sluggish all week.
AMP (ASX:AMP) up 0.2% to $5.45; Bank of Queensland (ASX:BOQ) up 0.2% to $10.34; Bendigo and Adelaide Bank (ASX:BEN) up 0.4% to $10.75; Macquarie Group (ASX:MQG) down 1.5% to $79.65; Suncorp (ASX:SUN) down 0.3% to $12.76; Telstra (ASX:TLS) up 1.6% to $5.33. Only 2.9 billion shares traded hand on the New York Stock Exchange, a very low level.
Other markets: Stocks in Asia closed mostly lower (http://www.marketwatch.com/story/asian-stocks-slump-as-investors-remain-cautious-2016-08-24) as investors there remained on the sidelines ahead of Yellen’s speech. After initially rising, Mylan shares fell 0.7 percent. The Topix lost 0.9 percent, Australia’s S&P/ASX 200 Index dropped 0.5 percent and South Korea’s Kospi index fell 0.6 percent.
Oil prices rebounded on expectations that the dollar would weaken ahead of Yellen’s speech.
Brent crude was down about 1.7%, changing hands at around US$49 per barrel, after hopes for a production freeze at OPEC were somewhat diminished while United States inventories data also underscored the current glut in supply.
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Meanwhile, commodities were mixed, with the October crude contract gaining 56 cents to US$47.33 per barrel and October natural gas up five cents at US$2.89 per mmBTU. “If Yellen shows less confidence about the USA economy, maybe people would like to buy the yen more, but I also think there are long-term investors who step in to buy dollars whenever it falls below 100 yen”. The euro rose despite a weak German IFO survey showing German business morale deteriorated sharply in August as Brexit shock weighed on sentiment.
