Global stock markets ended the week on a mixed note, with investors concerned that interest rates will remain elevated and over the uncertainty of China's economic prospects.
Minutes from the US Federal Reserve's Federal Open Market Committee on Wednesday indicated that another rate rise is on the table as officials still see inflation as a threat.
Most officials “continued to see significant upside risks to inflation, which could require further tightening of monetary policy”, the minutes said.
After pausing its tightening cycle in June, the Fed increased its policy rate for the 11th time since March 2022 by 25 basis points, the highest since 2001, as it aims to bring inflation down to its 2 per cent target range after prices hit a four-decade high in June 2022.
The Fed has raised rates by a total of 525 bps since March 2022, but investors became a bit optimistic that the US central bank was done raising rates and might start cutting them in 2024, given that inflation has considerably lowered since peaking in the summer.
However, latest economic data, particularly a stronger-than-expected retail sales report, signals that inflation may still be on the rise, hampering these hopes.
The US economy added about 187,000 jobs in July, which is below the projected 200,000 from analysts – data that suggests the Fed's interest rate rises may lead to an elusive soft landing, or bringing down inflation without plunging the economy into recession.
Markets will be looking forward to Fed chairman Jerome Powell’s speech next week at the Fed's key annual symposium at Jackson Hole, Wyoming.
In China, meanwhile, the central bank cut key policy rates for the second time since June in an attempt to revive sagging economic growth.
The world’s second-largest economy has officially fallen into deflation, with both consumer and producer prices declining in July compared with a year ago.
“Uncertainties remain, yes, but the resilience of US consumer spending sapped investor sentiment by fuelling inflation expectations and Federal Reserve hawks, yet again,” Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a note.
Indices on Wall Street barely budged, with the S&P 500 inching down by 0.1 per cent. The index has lost about a quarter of its gains in August alone compared to its strong first seven months of 2023.
The Dow Jones Industrial Average rose a meagre 0.1 per cent. The tech-heavy Nasdaq composite shed 0.2 per cent to post a fourth straight session of declines and its longest weekly losing streak since December.
For the week, the S&P 500 declined 2.1 per cent, the Dow retreated 2.2 per cent and the Nasdaq shed 2.6 per cent. For 2023, however, they remain up, gaining 13.8 per cent, 4.1 per cent and 27 per cent, respectively. The Nasdaq has been lifted by a hot tech sector.
In Europe, stock markets ended lower to drag stocks to their lowest level in six weeks, also weighed down by worries on interest rates, which hit health care and banking stocks, and China's economy.
At the close on Friday, London's FTSE 100 settled 0.7 per cent lower, its worst in about five months and biggest weekly decline in more than a month.
In other major European bourses, Frankfurt's DAX declined 0.7 per cent and the Paris CAC 40 lost 0.4 per cent.
Uncertainties remain, yes, but the resilience of US consumer spending sapped investor sentiment by fuelling inflation expectations and Federal Reserve hawks, yet again
Ipek Ozkardeskaya,
senior analyst at Swissquote Bank
Asian shares logged significant declines earlier on Friday, with Hong Kong's Hang Seng losing 2.1 per cent at the close of trading and the Shanghai Composite retreating 1 per cent, directly affected by concerns on China's economic prospects.
Tokyo's Nikkei 225 shed 0.6 per cent, while South Korea's Kospi declined 0.6 per cent.
In commodities, oil prices settled higher on Friday but posted their first weekly loss since June, snapping a seven-week winning streak, amid China's growth concerns and fears of further monetary tightening.
Brent rose 0.81 per cent, or $0.68, to settle at $84.80 a barrel, while West Texas Intermediate added 1.07 per cent, or $0.86, close at $81.25. For the week, both Brent and WTI retreated about 2.3 per cent.
Gold, meanwhile, was virtually flat, rising less than 0.1 per cent, or $1.30, to $1,916.50 an ounce, to post its third consecutive weekly decline, also on expectations of high interest rates to stay.
The precious metal, a hedge against high inflation, “does not seem like an ideal asset class in the current environment”, said Phillip Streible, chief market strategist at Blue Line Futures.
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
UAE currency: the story behind the money in your pockets
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
KILLING OF QASSEM SULEIMANI
More on animal trafficking
KILLING OF QASSEM SULEIMANI
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Killing of Qassem Suleimani
What are the influencer academy modules?
- Mastery of audio-visual content creation.
- Cinematography, shots and movement.
- All aspects of post-production.
- Emerging technologies and VFX with AI and CGI.
- Understanding of marketing objectives and audience engagement.
- Tourism industry knowledge.
- Professional ethics.
The biog
Favourite hobby: I love to sing but I don’t get to sing as much nowadays sadly.
Favourite book: Anything by Sidney Sheldon.
Favourite movie: The Exorcist 2. It is a big thing in our family to sit around together and watch horror movies, I love watching them.
Favourite holiday destination: The favourite place I have been to is Florence, it is a beautiful city. My dream though has always been to visit Cyprus, I really want to go there.
The five pillars of Islam
Company%20profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20WallyGPT%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2014%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3ESaeid%20and%20Sami%20Hejazi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%3Cbr%3E%3Cstrong%3EInvestment%20raised%3A%20%3C%2Fstrong%3E%247.1%20million%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2020%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3EPre-seed%20round%3C%2Fp%3E%0A
A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
Three stars
The years Ramadan fell in May
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20PlanRadar%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2013%3Cbr%3E%3Cstrong%3ECo-founders%3A%20%3C%2Fstrong%3EIbrahim%20Imam%2C%20Sander%20van%20de%20Rijdt%2C%20Constantin%20K%C3%B6ck%2C%20Clemens%20Hammerl%2C%20Domagoj%20Dolinsek%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EVienna%2C%20Austria%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EConstruction%20and%20real%20estate%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E400%2B%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20B%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Headline%2C%20Berliner%20Volksbank%20Ventures%2C%20aws%20Gr%C3%BCnderfonds%2C%20Cavalry%20Ventures%2C%20Proptech1%2C%20Russmedia%2C%20GR%20Capital%3C%2Fp%3E%0A
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
MATCH INFO
Euro 2020 qualifier
Russia v Scotland, Thursday, 10.45pm (UAE)
TV: Match on BeIN Sports
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
More from Neighbourhood Watch:
More coverage from the Future Forum
The years Ramadan fell in May
The Penguin
Starring: Colin Farrell, Cristin Milioti, Rhenzy Feliz
Creator: Lauren LeFranc
Rating: 4/5
The biog
Favourite pet: cats. She has two: Eva and Bito
Favourite city: Cape Town, South Africa
Hobby: Running. "I like to think I’m artsy but I’m not".
Favourite move: Romantic comedies, specifically Return to me. "I cry every time".
Favourite spot in Abu Dhabi: Saadiyat beach
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
UAE currency: the story behind the money in your pockets
