Stocks, Futures Fall On Worry Over Growth Outlook: Markets Wrap

Stocks declined along with US and European equity futures Thursday as investors continued to fret over a slower economic recovery and the prospect of reduced central bank stimulus. The dollar advanced.

MSCI Inc.’s Asia-Pacific gauge was on track for the biggest decline in three weeks as Japan ended a prolonged winning streak, sapped by a plan to extend a virus emergency for Tokyo and other areas.

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China’s technology stocks slid after officials told firms including Tencent Holdings and Netease to end their focus on profit in gaming, again highlighting Beijing’s regulatory crackdown. Indebted developer China Evergrande Group plunged to the lowest since 2015. Australian equities tumbled as the nation grapples with a delta-strain outbreak.

The S&P 500 retreated for a third day overnight and the Nasdaq 100 posted the biggest drop in two weeks. A Federal Reserve survey signaled a moderation in economic growth due to the delta virus strain. Treasury yields retreated.

A rally that took global stocks to records has cooled as investors await more signs that economic reopening can overcome challenges posed by the delta variant. Another concern is the prospect of a gradual reduction in monetary-policy support, with the focus on the European Central Bank meeting later Thursday. Meanwhile, a surge in Chinese factory-gate inflation highlighted price pressures in the global economy.

Fear of delta “is driving the downside risks to the US economy, but also more broadly the global economy as that delta strain spreads around the world,” Kim Mundy, currency strategist and international economist at the Commonwealth Bank of Australia, said on Bloomberg Television.

In the latest Federal Reserve comments, Dallas President Robert Kaplan said based on the current outlook he would back a September announcement of a tapering in bond purchases and a possible start in October. Bank of New York President John Williams said “it could be appropriate” for the US central bank to begin tapering its bond-buying program before the year is out.

Elsewhere, oil was steady amid a slow return of US output after Hurricane Ida and Bitcoin traded around $46 000.

What to watch this week:

  • US President Joe Biden may make his choice this week on whether to renominate Fed Chair Jerome Powell to a second term
  • ECB President Christine Lagarde holds a press conference after the bank’s rate decision Thursday
  • China PPI, CPI, new yuan loans, money supply, aggregate financing, Thursday

Some of the main moves in markets:

Source : https://www.moneyweb.co.za/news/international/stocks-futures-fall-on-worry-over-growth-outlook-markets-wrap/

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Stocks, futures fall on worry over growth outlook: markets wrap

Source:Moneyweb

Stocks, futures fall on worry over growth outlook: markets wrap

Asian stocks dip, dollar up as China tech retreats: markets wrap

Source:Moneyweb

Asian stocks dip, dollar up as China tech retreats: markets wrap

British retail sales fall; gas shortage hits UK food; mining stocks and iron ore slides – business live

Source:The Guardian

British retail sales fall; gas shortage hits UK food; mining stocks and iron ore slides – business live

European markets set for slightly higher open as global sentiment remains tepid

Source:MSN

European markets set for slightly higher open as global sentiment remains tepid

U.S. Stocks Drop With Worries Mounting Over Growth: Markets Wrap

Source:Bloomberg

U.S. Stocks Drop With Worries Mounting Over Growth: Markets Wrap