US stocks dropped today, giving the S&P 500 its biggest decline in two months, on increasing views the Federal Reserve may raise rates as soon as June.
The Dow and S&P 500 ended in negative territory for the year, with the S&P 500 off 3.5 percent from its March 2 record closing high.
Those Fed worries pushed the US dollar to a nearly 12-year peak against the euro, and added to concerns the dollar will continue to weigh on US multinationals’ earnings.
The Dow Jones industrial average fell 332.78 points, or 1.85 percent, to 17,662.94, while the S&P 500 lost 35.27 points, or 1.7 percent, to 2,044.16, its biggest daily percentage decline since January 5. The Nasdaq Composite dropped 82.64 points, or 1.67 percent, to 4,859.80.
European shares slipped further from a seven-year high after sharply weaker oil and metals prices pulled down commodities stocks, although Credit Suisse rallied after naming a new chief executive.
The FTSEurofirst 300 index of top European shares ended 1 percent lower at 1,551.85 points after hitting a seven-year high of 1,579.93 points on Friday.
Meanwhile, Japan’s Nikkei fell to a near two-week low in volatile trade on today, erasing earlier gains as banks were hit hard by a report saying the Basel Committee may ask banks to boost capital as a sufficient cushion in case of spikes in interest rates.
The Nikkei ended 0.7 percent lower at 18,665.11, the lowest closing level since February 25. In the morning session, the Nikkei rose to as high as 18,924.38.
The broader Topix fell 0.5 percent to 1,524.75 and the JPX-Nikkei Index 400 also shed 0.5 percent to 13,856.27.
The Nikkei business daily said the proposal to boost banks’ capital has been shepherded through the Basel Committee on Banking Supervision by the UK and Germany, which are concerned about a rise in rates, but Japan and the US have raised strong opposition.
Japan’s opposition stems from its banks holding massive quantities of government bonds: 128 trillion yen ($1.05 trillion) worth in January, the Nikkei said.
Source. Buenos Aires Herald