On Wall Street, the Dow Jones Industrial Average fell 79.33 points, or 0.31 percent, to 25,916.54, the S&P 500 lost 6.37 points, or 0.22 percent, to 2,871.68, and the Nasdaq Composite was down 5.3 points or 0.07 percent at 7917.25.
For the week, the S&P fell 1.03 percent, the Dow lost 0.19 percent, and the Nasdaq fell 2.55 percent.
Middle East markets
Saudi Arabia’s index closed 0.4 percent lower on Thursday, dropped 3.3 percent in the first week of September. Despite the recent drop in the market, the Saudi index has added 6.3 percent so far in 2018.
On Friday, Saudi Basic Industries dropped 2 percent and refiner Petro Rabigh fell 3.8 percent.
"Currently what we see is that the premium to valuation multiples has declined," Mazen al-Sudairi, head of research Al Rajhi Capital, told Reuters. "This is because fund managers are looking to reduce equities exposure due to trade wars and especially emerging markets given the steep decline in EM (emerging market) currencies. In our view the probability of downside from these levels is very limited."
Dubai’s index added 0.3 percent on Thursday, as Union Properties rose almost 5 percent and Emaar Development added 1.9 percent.
Neighbouring Abu Dhabi’s index edged down 0.2 percent as Abu Dhabi National Energy Co was down by 2.6 percent. Union National Bank, which saw big gains this week on news that it is in merger talks with Abu Dhabi Commercial Bank, was last down 4 percent.
Qatar’s index ended the day flat, Egypt’s index rose 0.3 percent, Oman’s index was flat, while Kuwait’s index edged up 0.2 percent and Bahrain’s index rose 0.4 percent.
Oil prices were mixed on Friday, as investors weighed weak global markets and geopolitical factors that might reduce oil supply.
Brent crude futures settled up 33 cents at $76.83 a barrel as protests in Iraqi city of Basra gave Brent some support.
“The situation in Basra has really flamed up ... that’s giving Brent some help here,” John Kilduff, partner at Again Capital in New York, told Reuters.
U.S. West Texas Intermediate (WTI) crude futures settled down 2 cents at $67.75 per barrel.
The dollar index against a basket of six major currencies was 0.37 percent higher boosted by strong data from the U.S.
U.S. job growth accelerated in August and wages notched their largest annual increase in more than nine years.
The dollar was also supported by trade tensions between the U.S. and China.
“If these tariffs go into effect, (China) may have to cushion the economy by devaluing its currency again,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. “That will push the U.S. dollar higher, which puts more pressure on emerging markets. It will also have a negative effect on U.S. exporters.”
Gold prices retreated on Friday on a stronger dollar.
Spot gold fell 0.1 percent to $1,198.40 as of 1337 GMT, after it hit a near one-week high on Thursday at $1,206.98.
U.S. gold futures were flat at $1,203.80 an ounce.
(Writing by Gerard Aoun; Editing by Mily Chakrabarty)
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