- MSCI World Shares fall, Stoxx 600 up 0.6%
- US retail sales and employment data are due
LONDON, Sept. 16 (Reuters) – Global markets struggled to gain ground on Thursday and US equity futures indicated a slightly lower opening for Wall Street, weighed down by concerns about a possible slowdown in the economic recovery following COVID-19.
European stocks gained, reversing the trend of a weak Asian session. Hong Kong’s Hang Seng Index fell to its lowest level so far this year, and Chinese stocks fell as investors shied away from real estate and consumer stocks over fears the group’s liquidity crunch. Chinese Evergrande does affect the economy at large.
The group’s main unit, Hengda Real Estate Group Co Ltd, has requested the suspension of trading of its onshore corporate bonds following a downgrade. Read more
At 11:14 GMT, the MSCI Global Equity Index was down about 0.1%. It has fallen about 1.7% since reaching an all-time high on September 7.
Surprisingly weak data from China on Wednesday bolstered investor bets on slowing global growth due to COVID-19 and supply chain constraints. Read more
But the European STOXX 600 was up 0.8% on the day, after falling 0.8% the day before and gaining 0.2% so far this week (.STOXX).
S&P 500 E-minis were down 0.1%, while Nasdaq 100 E-minis were down 0.2%.
The focus is now on US data on weekly jobless claims and retail sales for August, both expected at 8:30 a.m. ET (12:30 p.m. GMT). Read more
“Retail sales figures are expected to have declined in August,” Saxo Bank chief investment officer Steen Jakobsen wrote in a note to clients.
“While the decline is largely tied to market price, it could still support US Treasuries by lowering yields by a few basis points. Still, we expect yields to remain in a range of 1.25%. and 1.35% until next week’s FOMC meeting. “
Markets are awaiting the Federal Reserve’s meeting next week to see when the US central bank will start cutting stimulus.
Investors are also keeping a close eye on inflation data. The global picture is mixed: U.S. data on Tuesday showed inflation was cooling and may have peaked, but inflation in Britain was the highest in years, data showed Wednesday. Read more
“We have an unusual situation where the overall market is going down sideways but with a risky trend below and this is due to the signs that the Delta variant could peak in the US which is causing people to jump into it. raise and restart games, ”Kiran said. Ganesh, Head of Cross-Assets at UBS Global Wealth Management.
“At the same time, there are concerns about fiscal consolidation and concerns about China’s move to lockdown.”
The big banks have asked their clients to reduce their exposure to equities, with many market participants expecting the equity bull run to end. Read more
UBS’s Ganesh also said regulatory risks for Chinese stocks were not over.
“We will need 3-4 months of calm before people start to come back (to buy Chinese stocks). Big tech companies more prone to social issues – be it property or education – are subject to regulatory risks. “
The US dollar appreciated, with the dollar index rising 0.3% on the day to 92.746. Read more
The euro lost 0.4% to $ 1.17705.
The Australian dollar – which is considered a liquid indicator of risk appetite – was 0.2% lower at $ 0.7318.
Employment data showed Australian employment plunged in August as coronavirus closures in Sydney and Melbourne forced companies to lay off workers and cut hours. Read more
The 10-year US Treasury yield edged up to 1.3141%, while core Eurozone government bond yields were little changed.
Reporting by Elizabeth Howcroft, additional reporting by Sujata Rao; Editing by Emelia Sithole-Matarise and Chizu Nomiyama
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