S&P 500 caps worst week in two years as tech shares drop

The  S&P  500  Index  posted  the  biggest  weekly  drop  in  two  years  as concern  about  chipmaker  earnings  fueled  a  rout  across  the  technology industry. The S&P 500 lost 1.1% to 1,906.13.  The Dow  lost 115.15 points (0.7%) to 16,544.10.

IMF panel sees growing risks in weaker-than expected recover

Risks to an “uneven and weaker-than-expected” global economic recovery have  increased,  the  International  Monetary  Fund’s  (IMF)  steering committee said. The IMF Committee also said that “exchange rates should be allowed to respond to changing fundamentals.” The committee said it is committed  to  “lifting  potential  growth  and  to  creating  a  more  robust, sustainable, balanced, and job-rich global economy.”  It vowed to “pursue bold and ambitious measures” to spur economic demand. The recovery is “modest in Japan, and tentative in the euro area.”

Fischer says Fed may slow tightening if world growth disappoints

Federal  Reserve  Vice  Chairman  Stanley  Fischer  said  weaker-thanexpected global growth could prompt the US central bank to slow the pace of  eventual  interest-rate  increases.  “If  foreign  growth  is  weaker  than anticipated, the consequences for the US economy could lead the Fed to remove accommodation more slowly than otherwise,” he said.

Draghi says growing ECB balance sheet is last stimulus tool left

President  Mario  Draghi  said  expanding  the  European  Central  Bank’s balance sheet is the last monetary tool left to revive inflation although there is no target for how much it might be increased.  “It’s very difficult for me to give  you  an  exact  figure  at  this  point  in  time,”  Draghi  said.  The  central bank’s balance sheet, which can be boosted by buying assets or accepting collateral in return for loans, now stands at  €2.1trn  (US$2.7trn) compared with a 2012 peak of €3.1trn.

Schaeuble says Germany will shift spending to investment

German Finance Minister Wolfgang Schaeuble said Germany’s response to  a  “clear  weakening”  of  the  economy  will  be  a  shift  in  public  spending toward  investments  and  away  from  government  consumption.  Schaeuble said  the  government  will  lower  its  growth  forecast  for  Europe’s  biggest economy and cited sanctions imposed on Russia, geopolitical uncertainty, weaker growth in the rest of Europe and a loss of confidence as reasons.

Beijing finds agreement with IMF about slowing China

Central bankers and IMF officials agree with Beijing that a slowdown in the world’s second-largest economy is considered healthy and there’s no need for  further  monetary  easing.  Premier  Li  Keqiang  said  that  China  has already  achieved  its  employment  target  for  2014.  “Stamina  and perseverance”  are  as  important  as  speed  in  the  economic  policy  mix, underlining  why  China  has  avoided  stimulus  measures  including  using monetary policy to help meet its growth target, he said.

WTI, Brent post weekly declines as global supplies rise

WTI  crude pared the biggest weekly drop since January amid signs of a global glut. Brent, the benchmark for more than half the world’s oil, gained after  reaching  a  four-year  low  in  intraday  trading.  Brent  for  November settlement gained US$0.16 to end the session at US$90.21 a barrel.

Source: Bloomberg