HONG KONG (AP) — Asian and European stock markets sank Friday as investors, disappointed by the ECB's stimulus plan, hunkered down ahead of U.S. jobs data that will influence a Fed rate hike decision later this month.
[...] the ECB disappointed investors by cutting a key interest rate less than expected and not stepping up monthly bond purchases as expected, in a program known as quantitative easing, or QE.
Investors increasingly expect the U.S. central bank to raise rates from a record low at the meeting, but they'll also be keeping a keen eye on upcoming economic indicators that could influence the decision, starting with a U.S. jobs report for November due later Friday.
MARKET INSIGHT: "Share market volatility is likely to remain high in the run-up to the Fed's interest rate setting meeting in mid-December," Shane Oliver, head of investment strategy at AMP Capital in Sydney, said in a report.
Providing the Fed undertakes a 'dovish hike' as we expect, in stressing that future moves will be gradual, then confidence is likely to return allowing share markets to see the normal 'Santa Claus' rally into year-end and the broad trend in shares to remain up.
