Market Overview

Global Stocks Slide to 6-Week Low; Oil Retreats

Global Stocks Slide to 6-Week Low; Oil Retreats

Global stocks fell to a six-week low and U.S. equity futures retreated as inflation fears continued to depress investor sentiment. The MSCI World Index sank for a fourth day, losing 0.6% in the longest selloff since September. S&P 500 contracts dipped 0.4%, while Asian and European equities saw steeper losses. Oil declined as the largest U.S. gasoline pipeline resumed service. Bitcoin dropped toward $50,000 as Tesla Inc. suspended purchases using the cryptocurrency.

Confidence that reigned supreme until two weeks ago on the U.S. economy and continued Fed stimulus has been jolted in the past week with non-farm payrolls falling far short of expectations and inflation rising by the most since 2009. While some investors insist the surge in consumer prices is a one-off reopening burst, the broader markets are hedging against the possibility it may persist and force the Fed to consider tapering its stimulus.

Stocks

Futures on the S&P 500 Index decreased 0.3% as of 10:02 a.m. London time.The Stoxx Europe 600 Index declined 1.4%.The MSCI Asia Pacific Index fell 1.5%.The MSCI Emerging Market Index sank 1.3%.

Currencies

The Bloomberg Dollar Spot Index was little changed.The euro declined 0.1% to $1.2065.The British pound sank 0.1% to $1.4037.The onshore yuan was little changed at 6.456 per dollar.The Japanese yen strengthened 0.1% to 109.56 per dollar.

Bonds

The yield on 10-year Treasuries decreased less than one basis point to 1.69%.The yield on two-year Treasuries dipped less than one basis point to 0.16%.Germany’s 10-year yield rose two basis points to -0.11%.Britain’s 10-year yield jumped two basis points to 0.909%.Japan’s 10-year yield climbed one basis point to 0.094%.

Commodities

West Texas Intermediate crude declined 1.9% to $64.80 a barrel.Brent crude declined 1.8% to $68.07 a barrel.Gold was little changed at $1,815.13 an ounce.

Global Stocks Slide to 6-Week Low; Oil Retreats: Markets Wrap, Bloomberg, May 13

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