Investors turned risk averse, sending U.S. stocks to their biggest drop in four weeks amid a selloff in equities from Japan to Europe as oil’s plunge into a bear market rekindled global growth concerns. Gold climbed with the yen amid demand for havens.
The S&P 500 Index notched up its first back-to-back declines since the aftermath of the Brexit vote, while the Dow Jones Industrial Average’s losing streak hit seven days, its longest slump in a year. Retailers tumbled as data showed U.S. consumers tapped into savings to boost spending last month, while automakers plunged on concern the market may have peaked in 2015. MSCI’s All-Country World Index fell the most since July 5 as oil extended losses below $40 a barrel. Gold futures rose for a sixth straight day as the yen hit a three-week high after Japanese government’s fiscal plans underwhelmed investors.
European stocks slid for a second day as lenders deepened their declines, investors assessed mixed earnings, and crude prices weighed on oil companies.
Asian stocks fell for a second day, following declines in global equities, as Japanese shares led losses after the yen gained on disappointment over Prime Minister Shinzo Abe’s stimulus steps.
The MSCI Asia Pacific Index dropped 0.9 percent to 135.71 as of 9:04 a.m. in Tokyo. The Topix index slid 1.8 percent after Japan’s currency climbed 1.5 percent against the dollar Tuesday following the government’s announcement of 4.6 trillion yen ($45 billion) in extra spending for the current fiscal year. Risk-averse investors sent U.S. stocks to their biggest decline in four weeks.
Reference: Bloomberg
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