World shares fell Friday after the European Central Bank’s decision to keep its monetary policy intact dampened expectations of further stimulus to counter the impact of Britain’s vote to leave the European Union. Comments by the Bank of Japan governor ruling out “helicopter money” for the tepid economy also cast a chill.
KEEPING SCORE: Britain’s FTSE 100 shed 0.1 percent to 6,690.54. Germany’s DAX was down 0.4 percent to 10,117.22. France’s CAC 40 slipped 0.3 percent to 4,365.05. U.S. futures indicate positive but muted opening on Wall Street. Dow futures rose less than 0.1 percent and S&P futures was were less than 0.1 percent.
JAPAN: BOJ Gov. Haruhiko Kuroda’s comments ruling out so-called “helicopter money,” or direct cash injections into the economy, were recorded a month ago but aired Thursday by BBC. The remarks pushed the yen higher against the dollar, in turn pulling shares lower. Market heavyweights, like major exporters, suffer when the yen’s value rises.
ANALYST VIEWPOINT: “Central banks were all but prepared to come up with some coordinated action if the Brexit vote has rained fire and brimstone on global financial markets. But it did not,” said Bernard Aw of IG. “So central bankers are quite at a loss of what to do. Add more stimulus? Don’t add more stimulus? And they decided to stick to a safer option – wait and see.”
ASIA’S DAY: Japan’s Nikkei 225 fell 1.1 percent to 16,627.25. Hong Kong’s Hang Seng index shed 0.2 percent to 21,964.27. China’s Shanghai Composite Index lost 0.9 percent at 3,012.82. Australia’s S&P ASX 200 slipped 0.3 percent to 5,498.20. South Korea’s KOSPI edged down 0.1 percent at 2,010.34. Southeast Asian markets were down.
OIL: U.S. crude shed 14 cents to $44.61 in New York. On Thursday, it sank $1 to settle at $44.75 per barrel. Brent crude, the global benchmark, rose 1 cent to $46.21. It fell 97 cents to $46.20 a barrel in London on Thursday.
CURRENCIES: The dollar rose to 106.23 yen from 105.76 the previous day. The euro climbed to $1.1035 from $1.1027 on Thursday.
