Stocks slip on comments from Fed

The euro has fallen 5.6 per cent against the pound since mid-October. Natural gas futures rose 4.5 percent, Southwestern Energy shares rose 5 percent and shares of Range Resources and Consol Energy both rose 3 percent.

Higher yields and rising expectations of a December rate hike lifted the dollar index, which last stood at 98.003, a touch lower than a three-month peak of 98.135 scaled overnight. At that time, the minutes of the meeting showed that there was concern among Fed board members about the pace of economic recovery in the U.S. “If the incoming information supports that expectation, then our statement indicates that December would be a live possibility, but, importantly, that we have made no decisions about it”. Yellen said the Fed could make a move if it believes that as a result of the improving labor market, inflation will move back up to 2%.

Fed Vice Chair Stanley Fischer and New York Fed President William Dudley are slated to speak at separate events on Wednesday. “Yellen”, said HSBC analyst James Steel.

Investors have become increasingly confident that there’s a real chance of a December rate hike.

Emerging markets were the hardest hit following the Fed announcements, with broad declines worldwide.

The dollar broke out of its recent 120.00 to 121.60 range against the yen to reach a two-month high of 122.00 yen. It last stood at 2.229 percent.

Asian shares were subdued Friday ahead of a U.S.jobs report that’s likely to influence whether the Federal Reserve raises interest rates in December. On the other hand, mortgage rates have risen.

China’s Shanghai Composite index was up almost 3 percent to hit a two-and-a-half-month high, with sentiment underpinned by hopes for an immediate launch of the Hong Kong-Shenzhen stock connect scheme and an unexpected announcement of a historic meeting between leaders from China and Taiwan that will take place this weekend.

Silver futures for December delivery lost 0.5 percent to $14.983 an ounce on the Comex, after touching $14.91, the lowest in a month.

Shaking earlier losses after unexpectedly weak data on US jobless claims, the dollar rose 0.1 percent against the yen JPY= to 121.71 yen and was up 0.2 percent against the euroEUR= to $1.0886. Brent crude, which is used to price global oils, gained 33 cents to $48.91 a barrel.

“We’re a little below consensus”, said Jennifer Vail, head of fixed-income research at U.S. Bank Wealth Management in Portland, Oregon.