European stocks slide as Treasuries climb; Oil drops

The Stoxx Europe 600 index headed for its first drop in four sessions after shares declined across Asian markets, where Hong Kong led losses as police used tear gas and rubber bullets in an attempt to disperse protesters who have closed roads in the city’s financial district.

Jun 12, 2019 10:06 IST India Infoline News Service

European stocks slipped globally on Wednesday alongside US index futures amid signs the June revival in risk appetite may have overshot, with trade concerns still lingering. An escalating protest in Hong Kong compounded the negative sentiment, and Treasuries gained.

The Stoxx Europe 600 index headed for its first drop in four sessions after shares declined across Asian markets, where Hong Kong led losses as police used tear gas and rubber bullets in an attempt to disperse protesters who have closed roads in the city’s financial district.

US President Donald Trump, meanwhile, said he’s personally delaying a trade deal with China and won’t complete the accord unless Beijing returns to terms negotiated earlier this year. Futures on the S&P 500 and Nasdaq 100 indexes all edged lower. The dollar drifted, while Treasuries advanced across the yield curve. Gold and the yen rose as appetite grew for havens. Crude oil headed below $52 a barrel.

Just as investor concern over protectionism and global growth seemed to ease, Trump’s latest salvos at China and the Federal Reserve introduced fresh uncertainty. With the president scowling at the central bank’s “way too high” interest rates in a tweet on Tuesday, traders will next focus on US consumer- price data for clues on the Fed’s policy path.

Elsewhere, WTI-grade oil futures slumped in New York after an industry report showed US oil inventories swelling further. Hong Kong’s dollar climbed to the strongest level since December amid signs of tightening funding costs. Turkey’s lira weakened as traders pondered whether an interest-rate cut will come later Wednesday.

Source: Bloomberg

Related Story