Stocks dip on Ukraine, ahead of Yellen talk
By KELVIN CHAN, Associated Press
Aug 22, 2014 7:17 AM CDT
Trader Edward McCarthy, left, works on the floor of the New York Stock Exchange, Thursday, Aug. 21, 2014. U.S. stocks are opening higher, pushing the Standard & Poor's 500 index closer toward another record high. (AP Photo/Richard Drew)   (Associated Press)

HONG KONG (AP) — European stock markets turned lower on Friday, while Wall Street was expected to open flat, amid concerns of an escalation in the Ukrainian crisis after a Russian aid convoy entered the country.

Investors were also looking ahead to a meeting of central bankers that might shed light on the timing of U.S. interest rate hikes. Earlier, most Asian stock markets closed higher.

KEEPING SCORE: Germany's DAX was down 0.4 percent at 9,366.74 while Britain's FTSE 100 was flat at 6,775.04. France's CAC 40 dropped 0.8 percent to 4,260.84. U.S. stocks were poised for a flat opening — both Dow and S&P 500 futures were steady.

UKRAINE: Markets turned lower after a Russian convoy of aid entered Ukraine, defying the government there. The trucks are meant to bring supplies to residents in rebel-held zones where separatists are fighting with the Ukrainian government. There are concerns the move by Moscow could cause a direct confrontation between Ukrainian and Russian units.

YELLEN SPEECH: Later in the day, attention will turn to Jackson Hole, Wyoming, where U.S. Federal Reserve Chair Janet Yellen is set to headline an annual conference of central bankers and other policymakers from around the globe. Her speech on labor markets will be parsed by investors looking for any hints on the timing of interest rate hikes. Economists widely expect her to stick to her position that the job market isn't yet strong enough to allow the Fed to begin raising rates, which means markets will stay higher.

DRAGHI'S TURN: The Jackson Hole meeting's other big speech will be given by European Central Bank chief Mario Draghi. He's expected to give his view on the eurozone economy, which is stagnating even as rates are ultralow and stimulus is plentiful. "Overall, the tale of two speeches today is likely to be that monetary policy stimulus is still here for a while yet in the US, and a very long while in Europe," said Rabobank analyst Michael Every.

ASIA'S DAY: Japan's benchmark Nikkei 225 erased morning gains to close 0.3 percent lower as the yen strengthened. South Korea's Kospi added 0.6 percent. Hong Kong's Hang Seng advanced 0.5 percent and the Shanghai Composite in mainland China gained 0.5 percent. Australia's S&P/ASX 200 edged up 0.1 percent.

CURRENCIES: The euro edged down to $1.3264 from $1.3278 in late trading Thursday. The dollar weakened to 103.81 yen from 103.84 yen.

ENERGY: Benchmark crude oil for October delivery fell 32 cents to $93.64 in electronic trading on the New York Mercantile Exchange. The contract rose 51 cents on Thursday.

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