Stocks fall, the dollar rises due to increased fears around growth

Stocks were mostly lower Thursday as fresh cuts to economic forecasts added to investor concerns about the outlook for global growth. The euro held steady ahead of a rate decision by the European Central Bank, while the dollar edged higher for a seventh day.

Miners, dragged down by growth fears, weighed on the Stoxx Europe 600 Index ahead of Thursday’s ECB meeting in Frankfurt, where policy makers are said to be prepping a new round of bank funding to help stimulate the region’s slowing economy. U.S. futures declined as reports showed the country’s trade deficit widened to a 10-year high and private companies added fewer employees than analysts forecast last month. In Asia, shares fell in Japan and Hong Kong, with China bucking the trend. Treasuries ticked higher while European bonds were mixed.

Economic concerns have moved to the forefront once more, with ECB officials poised to cut forecasts a day after the Organization for Economic Cooperation and Development said it downgraded almost every growth outlook for Group of 20 nations. Investors will study the monthly U.S. jobs report on Friday for further clues. Trade remains in the picture with markets awaiting details of a possible accord, as President Donald Trump is said to be pressuring U.S. negotiators to cut a deal with China soon.

The Stoxx Europe 600 Index sank 0.5 percent as of 11:14 a.m. London time, the lowest in a week on the largest decrease in almost four weeks. Futures on the S&P 500 Index fell 0.2 percent to the lowest in three weeks. The U.K.’s FTSE 100 Index dipped 0.5 percent.

Germany’s DAX Index sank 0.6 percent. The MSCI Emerging Market Index sank 0.6 percent, hitting the lowest in more than two weeks with the first retreat in a week. The MSCI Asia Pacific Index fell 0.5 percent to the lowest in a week on the biggest fall in a week.

Stocks Drop, Dollar Edges Up as Growth Woes Spread, Bloomberg, Mar 07