Sat, 27 Feb 2021

Greenback rebounds, U.S. stocks flounder Friday

Lola Evans
16 Jan 2021, 07:16 GMT+10

NEW YORK, New York - Wall Street ended the week on a negative note Friday with all the major indices finishing the day in the red.

Reports that the vaccine reserve in the United States is exhausted and fears the new $1.9 trillion stimulus package proposed by incoming U.S. President Joe Biden could prompt corporate tax increases, were among reasons for the stock markets' retreat.

"It's a concern of the vaccine and maybe, to a lesser extent, the Biden spending plan that he outlined last night," Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago told Reuters Thomson Friday.

"It's more of a healthy correction to some of the advances that we've seen in the market."

The U.S. dollar shot higher on Friday with the euro falling sharply to 1.2078 by the New York close. The British pound fell to 1.3583. The Swiss franc eased to 0.8912. The Japanese yen was only marginally lower at 103.86.

The Canadian dollar slid to 1.2733. The Australian dollar tumbled to 0.7707. The New Zealand dollar declined to 0.7137.

The Dow Jones industrials finished the day, off 177.26 points or 0.57 percent at 30,814.26.

The Nasdaq Composite shed 114.14 points or 0.87 percent to 12,998.50.

The Standard and Poor's 500 dropped 27.29 points or 0.72 percent to 3,768.25.

Even heavier falls on equity markets were recorded in Europe and the UK.

In London, the FTSE 100 shed 0.97 percent. The German Dax declined by 1.44 percent. The Paris-based CAC 40 dropped 1.22 percent.

On Asian markets, in Australia, the All Ordinaries was flat, rising just 4.10 points or 0.06 percent to 6,986.80.

Japan's Nikkei 225 shed 179.08 points or 0.62 percent to 28,519.18,

The Hang Seng in Hong Kong gained 77.00 points or 0.27 percent to 28,573.86.

China's Shanghai Composite closed flat, edging up 0.47 of a point or 0.01 percent to 3,566.38.

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