December 8, 2013
Global stocks fall for week as shutdown continues; dollar near lows
Major stock markets rose but posted a second week of losses while the dollar hovered near an eight-month low on fears the budget standoff in Washington will drag on until politicians reach a deal to raise the US debt ceiling.
US stocks ended higher on the day, but the Dow and S&P 500 indexes fell for the week as the partial US government shutdown entered its fourth day and appeared likely to drag on for another week or more.
The S&P 500 posted a loss for the week and the CBOE Volatility index - the market's fear index - rose to 16.89, up from 13.12 on September 20. The index is still at relatively low levels, but options-market trading suggests investors are starting to guard against increased volatility.
The Dow Jones industrial average was down 16.70 points, or 0.11 percent, at 14,979.78. The Standard & Poor's 500 Index was down 0.58 points, or 0.03 percent, at 1,678.08. The Nasdaq Composite Index was up 2.91 points, or 0.08 percent, at 3,777.26.
European shares edged up today to end a two-day losing run, with Deutsche Telekom outperforming, while expectations of an eventual deal on the United States' debt issues also propped up equities.
The FTSEurofirst 300 hit a 5-year high of 1,274.59 points in late September, while the Euro STOXX 50 hit a 2-year high of 2,955.47 points.Meanwhile, Japan's Nikkei average fell to a one-month low as a lack of progress in the US budget standoff raised concerns that partisan politics in Washington could lead to a full-blown crisis in the world's biggest economy.
The benchmark Nikkei shed 0.9 percent at 14,024.31, its lowest closing since Sept. 6. On the week, the index fell 5 percent, marking its first weekly loss in five but is still up 35 percent this year. The broader Topix dropped 0.9 percent to 1,163.82 in light trade, with 2.37 billion shares changing hands.