On 04 September, 2015 – Global markets declined

US and European markets fell on fears that the Federal Reserve may raise interest rates later this month. Asian markets slid due to fears over the state of China’s economy.
United States
US stocks ended sharply lower on Friday, as the highly anticipated monthly jobs report intensified the debate about the Federal Reserve’s (Fed) decision to raise interest rates in September. Friday’s losses added to declines earlier in the week, with the main indexes recording weekly losses of more than 3%. The S&P 500 slid 1.5% for the day and 3.4% for the week. The Dow Jones Industrial Average dropped 1.7% on the day and 3.3% on the week. The Nasdaq Composite ended the day down 1.1% and posted a 3% weekly loss.
Utilities, health care and financials stocks were among the largest decliners. Biotechnology stocks were also among the biggest losers, with the iShares Nasdaq Biotechnology Index posting a weekly decline of 4.6%.
The US economy added a weaker-than-estimated 173,000 non-farm jobs last month, while the unemployment rate dropped to 5.1%, marking its lowest level since April 2008. Investors believe that the jobs report was solid enough for the Fed to consider an interest rate hike during the next Fed meeting on September 16 and 17.
Europe
European stocks fell Friday and finished lower for the week, weighed down by disappointing German manufacturing data. Investors also believed that the US jobs report was good enough to allow the Fed to raise interest rates later this month. The Stoxx Europe 600 gave up 2.5% on the day and lost 2.8% for the week; the DAX 30 dropped 2.7% on the day and 2.5% for the week; the CAC was down 2.8% and 3.3% for the day and week, respectively; while the UK’s FTSE 100 declined 2.4% on the day and 3.3% for the week.
Retail stocks declined sharply. Kering’s shares plummeted after Goldman Sachs downgraded Gucci’s parent company to sell from neutral. It said the Gucci brand remains at risk from its “over-expanded store network, similar to other luxury brands” such as Prada. Next also fell after the British apparel retailer’s rating was cut to underperform from neutral at Exane BNP Paribas.
In the UK, Hikma Pharmaceuticals and British Airways’ parent International Consolidated Airlines were the only advancers. Shares in miners Anglo American, Glencore and Rio Tinto declined after JP Morgan cut their price targets as its commodities team cut its near-term forecasts for base metals by 10% to 24%.
On the economic front, Germany’s manufacturing orders dropped 1.4% in July from the previous month, which was lower than economists’ forecast of a decline of 0.6%. Foreign orders also slid following the sharp increase in June.
Asia Pacific
Markets in Asia deepened their losses for the week on Friday, as worries about an imminent rate increase by the Fed overshadowed the potential for stimulus by the European Central Bank. While traders got a break from the volatile China market, as mainland markets have been closed the past two days for a national holiday, heavy selling on the back of persistent concerns about the state of China’s economy left regional stocks battered.
Japanese stocks fell to their lowest level in nearly seven months on Friday as market participants reduced stockholdings ahead of important US jobs data. The Nikkei Stock Average fell 2.2% on the day, the lowest level since February 10, and lost 7% this week, the biggest weekly drop since April 2014. Stocks closely linked to global growth fell. For instance, shares in manufacturing sensor and vision maker Keyence and electronics parts maker Murata Manufacturing declined.
Australia’s S&P ASX 200 rose 0.3% on Friday amid a recovery in commodity prices, but fell 4.2% on the week, while Hong Kong’s Hang Seng Index gave up early gains on Friday to close down 0.5% and fell for the seventh straight week, losing 3.8.
Global Stock Market Recap

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
Monday: Australia releases AIG Construction Index data; Japan releases foreign exchange reserve and preliminary Leading Economic Index data; UK releases Halifax House Price Index monthly and yearly figures; US markets will remain closed for Labor Day.
Tuesday: Japan releases quarterly GDP numbers; Australia releases NAB Business Confidence data; China releases balance of trade and export and import data; in Europe, GDP growth numbers are on tap, while the US releases NFIB Business Optimism Index and Fed Labor Market Conditions Index data.
Wednesday: Australia releases Westpac Consumer Confidence and home loan data; in Japan, consumer confidence figures are due, while in the UK, manufacturing and industrial production data are on tap.
Thursday: Australia releases employment data; in the UK, the minutes from the Bank of England’s (BoE) Monetary Policy Committee meeting as well as the BoE’s quantitative easing and interest rate decisions are on tap; US releases continuing jobless claims and initial jobless claims.
Friday: UK releases consumer inflation expectations; US releases core Producer Price Index data and preliminary Michigan Consumer Sentiment data.
*Note — all releases are listed in local time.