Gold down on dollar strength

The S&P 500 fell just 0.06%, the Nasdaq declined 0.23%, and the Dow Jones Industrial Average slid 0.02%.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.5 percent, led by 1.2 percent fall in Australian shares. Shares in the company, which traded above $250 each only a few months ago, fell below $80 on reports that a major hedge fund had sold its investment in the company and a congressional panel is probing the company’s operations. The contract slumped $1.58, or 3.3 percent, to close at $46.32 a barrel on Wednesday as Yellen’s comments pushed up the dollar.

While the government’s monthly jobs report is always important to investors, there is additional focus on this month’s report. The US Federal Reserve’s chairwoman said it would be appropriate to raise rates at the Fed’s policy meeting scheduled in mid-December in the backdrop of the American economy performing well.

Federal Reserve chief Janet Yellen and two senior colleagues pointed to December as a “live possibility” for a rise, adding to signs that the USA central bank is again on the verge of moving after months of vacillating over the domestic and global economy’s ability to deal with higher borrowing costs. Her view was echoed by another Fed policymaker later in the day.

Yellen stressed that no decision had yet been taken and a move in December would continue to remain data dependent. Fed governor Lael Brainard has expressed among the deepest concerns about whether a weak global economy could damage the USA recovery, but on Wednesday struck a slightly more upbeat note. The investors have been pretty slow to really accept the reality that the Federal Reserve might actually be ready to raise interest rates, with yields on the two-year Treasury Securities climbing on Wednesday.

The Fed’s stimulus campaign has encouraged borrowing and risk-taking, which officials say have contributed to economic recovery and job growth.

The dollar held steady at 121.84 yen after touching a 2 1/2-month high of 122.01 on Thursday, while the euro was also little changed at $1.0880 after dropping to a nadir of $1.0834, its lowest level in more than three months.

Atlanta Fed president Dennis Lockhart said on Thursday that the “US economy is likely in an above-potential growth phase… the case for liftoff will continue to firm up”.

ENERGY: Benchmark USA crude futures rebounded, adding 4 cents to $46.36 per barrel in electronic trading on the New York Mercantile Exchange.

Britain’s FTSE 100 fell 0.4 percent to 6,386.65 and Germany’s DAX dipped 0.1 percent to 10,831.16.