Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

Rate Hike Fears Bring Dollar Down

LONDON -- European markets slipped Monday, except in Germany which closed at a record high, as interest rate jitters and a weaker Wall Street encouraged profit-taking after the long bull run.


The dollar retreated from highs early in the day, but the nagging worry for both equity and foreign exchange markets was whether an interest rate rise will emerge from a U.S. Federal Reserve committee meeting starting Tuesday.


Economists expect no rate rises when monetary authorities meet on both sides of the Atlantic this week, including the two-day meeting of the U.S. Federal Open Market Committee.


But few investors are confident enough to take chances, in London and Paris at least, as the Open Market Committee meeting will open on the third anniversary of an unexpected U.S. rate hike which sent share prices tumbling around the globe.


By late afternoon on Monday, London's FTSE-100 index was down 18 points at 4,257.8 while in Paris, the CAC-40 was off 8.01 at 2,508.01.


An unpredictable Wall Street, which started sliding late Friday and opened weaker again Monday, provided the immediate depressant.


By the European close, the Dow Jones industrial average was down 18.86 points at 6,794.23. Wall Street dealers blamed relatively weak data from U.S. purchasing managers.


The dollar was at 1.6435 marks and 121.70 yen at late afternoon, weaker than in the morning but up from 1.6365 and 121.12 in late European trade on Friday.


?Asian stock markets closed mixed Monday, with share prices falling in Tokyo on profit-taking.


Tokyo's 225-issue Nikkei Stock Average fell 244.06 points, or 1.33 percent, closing at 18,085.95 points. On Friday, the average rose 465.97 points, or 2.61 percent.


The Tokyo Stock Price Index of all issues listed on the first section was down 4.74 points, or 0.35 percent, to 1,367.74. The TOPIX closed up 26.78 points, or 1.99 percent Friday.


In Hong Kong, share prices closed higher for the third straight session.


The Hang Seng Index, the Hong Kong market's key indicator of blue chips, rose 129.28 points, or 1 percent, closing at 13,451.07. On Friday the index had gained 33.39 points.