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Global stocks fell on Wednesday because of persistent concern over volatile oil prices and growing global growth issues.
The Stoxx Europe 600 lost 0.6% of its activity in the middle of the morning, as energy and resource stocks fell despite the stabilization of oil prices. Asian markets fell overall.
On Wall Street, futures posted 0.2% opening losses for the S & P 500 and the Dow Jones Industrial Average.
Oil prices rose slightly on Wednesday after plunging deeper into a bear market on Tuesday as worries about oversupply and weakening demand overwhelmed the market. US crude prices rose 0.7% after falling 7.1% on Tuesday, the strongest drop in three years.
The recent fall in crude prices has added to the volatility of the wider financial markets, already under the pressure of international trade frictions, massive sales of the technology sector and problems in the euro area. Equities have struggled to reach new highs since the S & P 500 ended its worst month in more than seven years in October.
Oil prices dipped deeper into a bear market on Tuesday because of concerns over oversupply and weakening demand.
Photo:
Martin Leissl / Bloomberg News
"There are a lot of problems: geopolitics, oil, trade wars, Brexit, make your choice," said Eric Stein, co-director of Global Income at Eaton Vance, based in Boston. "This means more volatility is to be expected in the foreseeable future."
Economic data released in Europe and China on Wednesday added signs of a slowdown in global growth.
The German economy contracted for the first time in three and a half years in the third quarter, while overall annualized growth in the euro area rose 0.2% in the quarter, its lowest rate since 2013.
In China, business activity was mixed in October, as retail sales grew at the slowest pace in five months, while growth in industrial production and investment accelerated.
The data was provided while investors were on the lookout for the latest moves in trade between the United States and China. Countries have resumed talks on trade ahead of a meeting between President Trump and President Xi Jinping scheduled for late November at the Group of 20 Nations summit in Buenos Aires.
The WSJ Dollar Index, which compares the dollar to a basket of 16 currencies, gained 0.1%. The 10-year US Treasury yield fell to 3.139 percent, down from 3.145 percent on Tuesday. Yields evolve in the opposite of prices.
US inflation data for October released Wednesday is expected to show a rebound in consumer prices. Analysts at Societe Generale have announced in a report that the report will be monitored for any sign of the potential impact of commercial rates on a broader range of consumer goods.
In Europe, investors were closely following the latest developments in the Brexit negotiations after Britain and the European Union drew up a draft agreement on the exit of the United Kingdom from the United Kingdom on Tuesday.
The pound was volatile, falling 0.4% against the dollar to 1.2917 dollars after previous rises, while the first controversial meeting Wednesday night was scheduled, when Premier Theresa May should submit the proposed pact to her firm.
"The bad news is that the prime minister must now sell this to his divided government and parliament – which will not be an easy task – while hoping that it will be passed by qualified majority by the rest of the world. EU, "said Peter Dixon, an analyst at Commerzbank, said in a note to customers.
In Asia, Hong Kong's Hang Seng sold 0.5%, while Japan's Nikkei Stock Average gained 0.2%. China's composite benchmark index, Shanghai Composite Index, fell 0.9%.
Write to Georgi Kantchev at [email protected]
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