Stocks fell on Thursday amid a negative session for Bank shares and criticism of the Federal Reserve by President Trump. The S&P 500 settled 0.4% lower.
In a televised interview, President Trump said he was not happy that the Fed was raising rates – “I’m not happy about it…but at the same time I’m letting them do what they feel is best.” US bond yields traded 3 basis points lower (prices rose) for the session.
Bank shares fell in tandem with the decline in bond yields, dragging the Financials sector down 1.4%.
European equities also closed lower yesterday. The Euro Stoxx 50 index fell 0.4%, the German DAX index lost 0.6% and the French CAC settled 0.5% lower.
Basic resources were among the primary underperformers, following 1.6%. Persistent concerns about the growth rate of the Chinese economy led to weakness across commodity-sensitive companies.
Stocks ended the week on a mixed note in Asia overnight. Japanese equites closed marginally lower, while Chinese stocks gained 2% amid signs of intervention from Chinese authorities looking to stem the currency’s weakness.