BLOOMBERG.COM
Global equities headed for a four-week low, government bonds rose and the yen rebounded against the dollar after disappointing Chinese data jolted investors whose concerns about the world’s second-biggest economy had eased amid their fixation on U.S. interest rates, Brexit and earnings. The MSCI All-Country World Index fell for a third day as European shares tumbled and U.S. stock-index futures pointed to a lower open. Bonds in Asia, Europe and the U.S. rallied in sync. Emerging markets also weakened, with the yuan trading at a six-year low and Turkey’s lira sliding to a record. Crude oil traded about $50 a barrel, while metals retreated. Perceived investment-grade corporate credit risk climbed to the highest since July 8. “China was a big issue at the beginning of the year and now it spooks investors with some issues resurfacing,” said Philippe Gijsels, chief strategy officer at BNP Paribas Fortis in Brussels. “The problems just add to the uncertainty about the world economy, Fed hiking rates, earnings season, elections and referendums coming up. Brexit is starting to hurt markets too because of the tough discussions ahead; this is getting people a bit worried and it all adds up to typically more volatile period of the year.”
Read more>
Global equities headed for a four-week low, government bonds rose and the yen rebounded against the dollar after disappointing Chinese data jolted investors whose concerns about the world’s second-biggest economy had eased amid their fixation on U.S. interest rates, Brexit and earnings. The MSCI All-Country World Index fell for a third day as European shares tumbled and U.S. stock-index futures pointed to a lower open. Bonds in Asia, Europe and the U.S. rallied in sync. Emerging markets also weakened, with the yuan trading at a six-year low and Turkey’s lira sliding to a record. Crude oil traded about $50 a barrel, while metals retreated. Perceived investment-grade corporate credit risk climbed to the highest since July 8. “China was a big issue at the beginning of the year and now it spooks investors with some issues resurfacing,” said Philippe Gijsels, chief strategy officer at BNP Paribas Fortis in Brussels. “The problems just add to the uncertainty about the world economy, Fed hiking rates, earnings season, elections and referendums coming up. Brexit is starting to hurt markets too because of the tough discussions ahead; this is getting people a bit worried and it all adds up to typically more volatile period of the year.”
Read more>