Market Overview

Stocks sell-off strengthened on new concerns about global growth

Losses on global stocks snowballed on Monday, with European markets following Asian peers lower as fresh signs emerged of slowing growth worldwide and fears grew that simmering U.S.-China tensions would torpedo chances of a trade deal. Wall Street was set to open lower, futures indicated, after New York-listed shares posted their biggest weekly decline since March. “Another day, another reason to sell risk. Equity markets remain in a world of pain with everyone in search of a very elusive silver lining,” said Stephen Innes at brokerage OANDA.

MSCI’s all-country index .MIWD00000PUS has spent four weeks in the red, despite intermittent rallies fueled by hopes of trade war detente. The pessimism has been exacerbated by data showing the world’s largest economies — the United States, China, Japan and Germany — are all headed for slower growth. That pushed the index 0.5 percent lower, while a pan-European index fell almost one percent by 0930 GMT and U.S. equity futures ESc1 YMc1 were down 0.5 percent, suggesting more pressure on Wall Street later in the session.

Economic data has disappointed, too, underscoring the impact of the trade wars on the world economy. Following weak trade and inflation data on the weekend, China posted far weaker-than-expected November exports and imports, reinforcing expectations Beijing will roll out more stimulus to prevent the economy cooling too fast.

MSCI’s index of Asian equities outside Japan .MIAPJ0000PUS slid 1.5 percent to a near three-week low, Shanghai shares .SSEC retreated 0.6 percent and Japan’s Nikkei .N225 shed 2.1 percent. Emerging-market stocks lost 1.3 percent .MSCIEF. Asia’s data came after investors were spooked last week by below-forecast industrial output numbers in Germany and U.S. jobs data showing employers hired fewer workers than expected in November.

Stock selloff snowballs on fresh fears for world growth, Reuters, Dec 10
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