Global stocks decline on US interest rate concern

beijing — Global stocks declined on Monday on investor concerns about more possible US interest rate hikes.

Germany’s DAX fell 0.6 per cent to 12,040.26 and France’s CAC 40 lost 0.6 per cent to 5,325.91. London’s FTSE 100 retreated 0.3 per cent to 7,298.96. On Friday, the DAX lost 1.1 per cent, the CAC 40 dropped 1 per cent and the FTSE 100 fell 1.3 per cent. On Wall Street, the future for the Standard & Poor’s 500 index was down 0.2 per cent and that for the Dow Jones industrial average was off 0.3 per cent.

The Shanghai Composite Index tumbled 3.7 per cent to 2,716.51 and Hong Kong’s Hang Seng retreated 1.4 per cent to 26,201.08. Japanese markets were closed for a holiday. Sydney’s S&P-ASX 200 lost 1.4 per cent to 6,100.30 and Seoul’s Kospi was off 0.6 per cent at 2,253.83. India’s Sensex declined 0.3 per cent to 34,267.77. Jakarta gained while New Zealand, Taiwan and Singapore retreated.

Prices fell following Federal Reserve chairman Jerome Powell’s comment that interest rates are a “long way” from holding back economic growth. That prompted

speculation the Fed will raise rates further. The S&P 500 lost 0.6 per cent, the Dow dipped 0.7 per cent and the Nasdaq composite skidded 1.2 per cent. The yield on the 10-year Treasury note jumped to 3.23 per cent, its highest since May 2011, from 3.19 per cent.

Beijing injected money into its cooling economy by reducing the level of reserves banks are required to hold. Economists say that should free up some 1.2 trillion yuan ($175 billion) for lending. The central bank told banks to lend more to entrepreneurs.