U.S. stock markets closed lower on fears Brexit and the fed rate hike

MOSCOW, 4 Jul — RIA Novosti. The major US stocks dropped on Tuesday amid fears of investors associated with the UK out of the EU, and prospects of fed rate hike in the coming months, according to the auction.

Dow Jones industrial average fell 0.47% to 18168,45 points, the index high-tech NASDAQ companies – 0.21%, to 5289,66 points, the index of wide market S&P 500 — by 0.5%, to 2150,49 points.

The head of the Federal reserve Bank of Richmond Jeffrey Lacker (Jeffrey Lacker) said on Tuesday that the fed should start to raise rates. “Reasonable preventive measures (against inflation — ed.) could help us to avoid trudnoporoshkuemye situation that will require emergency measures,” he said, adding that the targets for employment and inflation, which the fed has set for raising rates look achievable.

The international monetary Fund again lowered its growth forecast for the U.S. economy to 2016, including for Brexit, this time by 0.6 percentage points to 1.6%; in 2017, 0.3 percentage points, to 2.2%.

Investors continue to follow the news from Europe. So, Prime Minister Theresa may on Sunday said that her country intends to activate article 50 of the Lisbon Treaty on withdrawal from the EU until the end of March 2017.

In addition, as reported Bloomberg citing sources the European Central Bank may begin to reduce bond-buying programme of quantitative easing sooner than expected.

“Perhaps it is the day when investors began to expect a rate increase around the world, they also reflect on the fact that the ECB may not extend the program in March,” said a trader Themis Trading LLC mark Kepner (Kepner Mark) the Agency MarketWatch.

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