There is a growing concern due to the lack of global growth among investors even as there were more cuts made on the economic forecasts. That resulted in the global stocks falling and the dollar price increase.
In the markets:
Stocks:
In the European market, The S&P 500 futures fell to its lowest in three weeks by 0.2%,
the FTSE 100 index reduced by 0.5%. The Stoxx Europe 600 Index also slumped by 0.5% and had the largest fall in a month. The German markets fared no better with DAX index falling by 0.6%.
The MSCI Asia-Pacific’s broadest index also had its biggest fall and was down by 0.5%, and so was the MSCI emerging markets index which fell by 0.6% its lowest in two weeks.
Bonds:
The US Treasury bonds for 10-year reduced by a basis point and ended at 2.68%. The yield for the German treasury bonds also fell by a basis point and was at 0.12%. Britain’s 10-year bond yields ended at 1.215% with a fall of 1 basis point. Italy’s yield for 10-year bonds increased by 5 basis points to 2.636%.
Commodities:
The Bloomberg Dollar Spot Index increased marginally to 0.05% achieving its highest in three weeks. Gold also saw a small rise and was at $1,286.93 for an ounce with a 0.05% rise. The WTI crude rose by 0.7% and was at $56.62 for a barrel.
Currencies:
The Euro was steady and made its first jump this week with a rise of 0.1% and ended at $1.1318, the Pound fell too, with a slight fall of 0.1% and was at $13,151 making its sixth consecutive fall. The yen saw a marginal rise of 0.1% and was at 111.66 for a dollar.
Chief market strategist Oliver Porsche said, “we are seeing a slowdown in the economy, we’re seeing a slowdown in corporate earnings. The market is waiting to see if things are going to turn out better or worse than they expect and we just don’t know.” His statement sums up the feelings most investors have right now. The global economic concerns have again raised its head with ECB hinting to reduce the forecasts which means that the 20 nations are looking at a slowdown in the economy. Moreover, with no further news of a deal in the trade talks with the United States and China the markets are still not sure of how things will pan out.
