European markets down, tracking global cues

The Stoxx Europe 600 Index fell with most industry groups down, and S&P 500 futures declined.

Jun 14, 2019 10:06 IST India Infoline News Service

stock market chart
Equity benchmark indices were trading in the red on Friday tracking fall in the Asian and US markets, while Global bonds rallied on bets that interest rates will fall as trade frictions jeopardize global economic growth.

The Stoxx Europe 600 Index fell with most industry groups down, and S&P 500 futures declined. Nasdaq 100 contracts slid after Broadcom Inc. cut its annual sales forecast, citing trade war concerns. Chinese shares dropped, while Japan’s Topix index rose. Gold climbed above $1,350 an ounce, a level was last seen in April 2018.

Meanwhile, Ten-year Treasury yields extended their drop after a surprise increase in US jobless claims on Thursday lent credence to speculation the Federal Reserve may cut interest rates. All eyes now turn to retail data due later Friday for further clues on the strength of the American economy.

With heightened US-China trade tensions threatening to weaken already fragile global economic growth and geopolitical concerns ratcheting up in the Middle East, equity investors are banking on more support from central banks. The odds of the Fed lowering the fed funds rate target next week are higher than many expect, according to BMO strategists, though DoubleLine Capital’s Jeffrey Gundlach said he doesn’t think policymakers will cut interest rates this month.

Source: Bloomberg

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