Central Bankers Weigh On World Stocks

LONDON, (UrduPoint / Pakistan Point News -9th Sept,2016) : Stocks slipped Friday as a senior US central banker flagged an early rate rise, a day after the European Central Bank failed to deliver new stimulus, disappointing markets.

In Asia, markets were also marred by concerns over North Korea's nuclear test. Wall Street fell after Eric Rosengren, president of the Boston Fed and a voting member of the Fed's policy committee this year, suggested tighter credit may well be needed to avoid an overheating of the economy.

"If we want to ensure that we remain at full employment, gradual tightening is likely to be appropriate," he said, rekindling talk that a Fed hike, which many investors expect for December, could now come as early as the central bank's next meeting on September 20-21.

The hint of a more aggressive Fed stance added to gloom across the Atlantic where European investors were still digesting an apparent lack of urgency on the part of the ECB to do more for flagging eurozone economies.

The ECB Thursday held back from adding firepower to its quantitative easing programme by which it pumps cheap money into the financial system. "It looks like the markets are in for a rather uninspired end to the week," said Spreadex analyst Connor Campbell. Frankfurt and Paris extended morning losses after the Fed official's comments and Wall Street's reaction.