LONDON, Sept 17 (AFP): Stock markets were mixed Friday after a painful few days as traders tracked Delta variant developments, Chinese regulatory crackdowns, disappointing economic data and brewing geopolitical tensions.
Asia's main indices closed out the week higher while Europe was lower after another tepid overnight lead from Wall Street, which was pulled between better-than-expected US retail sales and an above-forecast reading on jobless claims.
On foreign exchange, the euro rose against the dollar and British pound following a report in the Financial Times that the European Central Bank was on course to hike eurozone interest rates in 2023, an outlook later denied by the ECB.
Rising prices as economies emerge from pandemic lockdowns has triggered expectations that central banks will both taper their huge financial stimulus packages and raise interest rates sooner than expected.
The main focus for investors is now the US Federal Reserve's policy meeting next week and whether it will signal how much and how long it will dial back the vast bond-buying programme that has been key to a global economic and equity rally for more than a year.
The Bank of England also meets next week amid annual UK inflation at the highest level in more than nine years.
The Fed will "probably admit they're going to taper, but maybe not taper as much as everybody thought", markets strategist Louis Navellier said.
Eyes are also on the progress of US President Joe Biden's multi-trillion-dollar infrastructure and social spending plans, which are struggling through Congress.
World stocks diverge as traders close out tough week
FE Team | Published: September 17, 2021 22:10:39
World stocks diverge as traders close out tough week
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