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Hideyuki Sano
TOKYO (Reuters) – Asian stocks retreated Wednesday from the eight-month high, as the IMF lowered its global growth outlook and tensions over US-EU tariffs hit a record low. # 39; intensified.
MSCI's broadest share of Asia-Pacific equities out of Japan fell 0.1%, one day after peaking in eight months, while Japan's Nikkei lost 0.9% .
On Wall Street, the S & P 500 dropped 0.61% and the Nasdaq Composite lost 0.56%.
MSCI's largest share of global stock markets fell 0.1% on Wednesday from a six-month high on Tuesday, but still 19% higher than its December low, its lowest level ever since almost two years.
Although profit forecasts have been corrected recently, equity markets have been supported by the hope of a trade agreement between Washington and Beijing and by the optimism that the Chinese economy could be content with political support.
"The gap between the strength of global equities and the gloom of the real economy has widened," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
This view was reinforced Tuesday when the International Monetary Fund lowered its global economic growth forecast this year, saying the global economy was slowing more than expected and that a sharp recession could force world leaders to coordinate their stimulus measures.
US data overnight added to the cautious atmosphere as job openings hit a 11-month low in February, raising doubts about the strength of the US labor market, which has so far has been one of the few strengths of the economy.
Anxiety in global trading was another sore point for risky badet markets.
US President Donald Trump has threatened to impose tariffs on EU goods worth $ 11 billion, exacerbating tensions over a long-standing dispute over transatlantic subsidies.
The decision was made while markets remained on the rise, with negotiators attempting to enter into trade agreements with China and its neighbors, Mexico and Canada.
Global debt yields remained stable, with 10-year US Treasury yields rising to 2.501% from 2.340% at their lowest level in 15 months at the end of last month.
Saudi Aramco is expected to raise $ 12 billion through its first international bond issue after receiving more than $ 100 billion in orders.
It was a record of market confidence for the oil giant despite concerns over the badbadination of Saudi journalist Jamal Khashoggi in October.
The major currencies moved little and immediately focused on the European leaders' summit and the European Central Bank's policy meeting.
European Union leaders will probably give British Prime Minister Theresa May a second deadline, but they could demand that she accept a much longer extension, with France pushing for conditions to limit Britain's ability to undermine the block.
The euro has remained at 1.126 dollars, extending its slow recovery of 1.1113 dollars hit on 2 April. It has increased by 0.43% so far this week. The British pound perched $ 1.3059, little changed the day.
The dollar slid to 111.14 yen after falling 0.5% this week.
Oil prices held up after peaking five months earlier as fighting in Libya raised supply disruption issues.
The US crude futures price rises to $ 64.23 a barrel, up 0.3% in Asian trade early in the period, after peaking at $ 64.79 on Tuesday.
Brent crude futures traded at $ 70.83 a barrel, close to $ 71.34 in the last five months.
Edited by Shri Navaratnam
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