Market Headlines – 12/2/2018
- US. equities ended their worst week in two years on a positive note, gaining 1.2% Friday, but rate-hike fears that pushed markets into a correction remain as investors await American inflation figures on Feb. 14.
- The S&P 500 fell 5.2% in the week, its steepest slide since January 2016, jolting equity markets from an unprecedented stretch of calm.
- Pressure on equities came from the Treasury market, where yields spiked to a four-year high, raising concern the Federal Reserve would accelerate its rate-hike schedule. Yields ended the week at 2.85%.
- The CBOE Volatility Index (VIX) ended at 29, almost three times higher than its level two weeks ago. Signs mounted that jitters also spread to other assets, with measures of market unrest pushing higher in junk bonds, emerging-market equities and Treasuries.
- European stocks also fell the most since January 2016 last week, falling 5% on the week and 1.5% on Friday, as global turmoil persisted amid rate hike concerns.
- In currency news, the euro lost ground against the dollar closing at 1.23 on Friday after finishing the previous week at 1.25.
In Asia overnight, Shares in Hong Kong and China, which bore the brunt of last week’s selloff, rose, gaining 1.8%. Japanese equity markets were closed.