LONDON (ShareCast) - (ShareCast News) - Stocks dropped immediately lower out of the gate on the second day post the US central bank´s decision to raise interest rates, with little in terms of fresh economic news and with most traders making sure their books were squared going into the typically extremely quiet holiday season.
The Dow Jones Industrials fell 1.14% or 200 points to 17,297, while the S&P 500 and Nasdaq Composite were down by 19 and 33 points each to 2,023 and 4,970, respectively.

Nevertheless, the Baker Hughes rig count due out at 18:00 GMT did hold the potential to move oil markets.

To take note of, dollar/yen - often considered a proxy for risk-appetite globally - was on the backfoot after new stimulus measures in Japan got a cold reception from some traders.

Markit´s services sector purchasing managers index slipped in December from a reading of 56.1 to 53.7 (consensus: 55.9) - its lowest level since December 2014.

Surprise Japan decision sends Asia markets into decline

Elsewhere, surprise measures from the Bank of Japan to boost its economy had Asian markets stunned on Friday.

The central bank announced new measures, which would supplement its easing programme, including a plan to purchase exchange-traded stock funds worth up to JPY300bn (£1.66bn).

Initial reactions on Japanese markets were positive, but that excitement quickly subsided as the relative scale of the programme, when compared to the country's lengthy economic struggle, caused many analysts to question its probable effectiveness.

"They're all helpful measures, but they won't make much difference in practice", said Marcel Thieliant of Capital Economics.

He described the additional stock funds purchases as "miniscule".

Other analysts described the move as a technical measure, rather than additional easing.

Shingo Ide of the NLI Research Institute said that given Japanese stocks were trading up to 15% higher than 12 months ago, the Bank of Japan needed to but more exchange-traded stock funds for its easing to have the same effect.

Oil prices were little changed, with WTI crude futures flat at $34.95 per barrel.

M&A news moving shares

In company news, Stryker may be set to offer $18bn for Smith&Nephew, according to a person with knowledge of the situation, StreetInsider reported.

Analysts were keeping an eye on Bristol-Myers Squibb shares after GlaxoSmithKline announced it would be buying a number of its HIV assets.

Wells Fargo was expected to move after Zurich Insurance's US subsidiary announced it will buy its crop insurance business and its subsidiary for up to $1.05bn (£700m).

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