Rough times in US stock markets as the Nasdaq Composite Index and S&P 500 both entered a technical correction this week, meaning they are down over 10% from recent highs. The NASDAQ lost 2.04% on the week; the S&P fared even worse with a 2.53% loss and the DJIA closed the week 2.14% in the red. All this despite some encouraging earnings reports from US companies this quarter.
It was a different story in Asian markets on Friday, the Hang Seng in particular gaining over 2% on the day, allowing the index to close the week 1.32% in the black. In Japan, the Nikkei also managed to climb up 1.27% although it was not enough to stop the index from closing 0.86% down on the week.
Traders are trying to get comfortable with a framework of higher interest rates for longer. Further rate hikes are by no means off the table either. As there continues to be no hint of monetary easing, the Dollar keeps soaking up any bullish momentum.
Of course, this is not the only subject looming at the back of our collective mind. The events in the Middle East remain on the centre of the world stage, with no real indication of which way the pieces will fall as of yet. Perhaps this was the main driver behind gold as it finally smashed passed the $2k mark for the first time since May, closing on Friday at $2006 per ounce.
We briefly saw the Japanese currency toy with the 150 level last week but it clearly did not amuse some deep-pocketed interests as it then shot down 0.5% on Friday to close the week back at around 149.6 Yen. The Euro and Pound are both teetering on the edge of some potentially heavy price action as the Dollar once again flexes its muscles.
