Join NexChange - the professional
network for the financial services
industry - and receive a free one-
year subscription to Forbes
Daily Scan: Stocks fall ahead of weekend; Russia moves into Syria
Updated throughout the day
Good evening. After reading the tea leaves overnight on the newest Federal Reserve policy statement, traders and investors headed to gold and bonds. Safety on, risk off. The Dow fell steadily all day, closing with a 1.74% loss. The S&P 500 was down 1.61%, and the Nasdaq dropped 1.36%. To review: The Federal Open Market Committee voted Thursday to hold steady on zero interest rates. The markets aren't loving this move. And it's not just because the Fed policymakers have said they are worried about the slowdown in China and its effect globally. Investors are worried that the Fed has been stripped of its power to act. The central bank is the de facto leader of global monetary policy. Inaction is making our partners anxious. The dollar is nearing a 3-week low and stock futures are off about 1%. Get ready now for the next month's worth of: Will the Fed lift rates in October or December? It's the longest running monetary reality show in the world.
Here’s what else you need to know:
Russia moves first fighter jets to Syria. At least four tactical fighter jets are at the growing airfield on the Syrian coast. Russia has already sent housing for up to 2,000 people, attack helicopters, choppers for troop transportation, and artillery. It's not yet clear what Russia's full intent is. Wall Street Journal (paywall)
Burkina Faso president freed. President Michel Kafando has been freed after being seized by the military coup Thursday. Prime Minister Isaac Zida is still under house arrest. BBC
Japan dumps dovish approach. The upper chamber of Parliament approved the controversial bills allowing the military to engage in overseas combat, a major shift since the island nation's post-WWII pacifism. The bill will allow overseas combat for the Self-Defense Force in very limited circumstances. They were previously limited to humanitarian roles. CNN
Deutsche Bank pulls i-banking out of Russia. Deutsche has been making moves to significantly cut company costs worldwide. By the end of the year, about 200 investment bank employee in the Russian deal advisory and securities-trading services will be affected. Technology, cash management, and other financial services employees will stay in place. Wall Street Journal (paywall)
Baby Doe identified. Law enforcement says it has finally identified the body of the young girl found in the Boston Harbor in June. The Boston police have been pushing a forensic photo of the girl, Bella Bond, around the area for months. The child's mother and her boyfriend have been arrested in relation to her death. CNN
Despite everything, Asia ends week modestly higher. Friday was mixed post-Fed decision day. Asian stock markets went 'huh?' and bond markets rallied. The Shanghai and Hong Kong indices rose a modest 0.38% and 0.30%, respectively. Markets in Jakarta, Kuala Lumpur, and Tokyo were all down.
Danke, Janet. With Yellen & Co. keeping rates unched, European bond yields are starting to drop like flies. German 10-year bund yie