Global Stocks Slide As Geopolitical Headwinds, Hurricanes Grow

Wednesday, September 6, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Sep 6, 2017

Global risk sentiment remained gloomy coming into Wednesday, with global European and Asian stocks sliding on growing concerns about North Korea and political inaction in the US, another hurricane bearing down on the US and the American debt ceiling looming. Industrial metals dropped as the latest Chinese commodity bubble appears to have peaked. Shortly before 6am a sharp risk-off move across asset classes was blamed on an erroneous North Korea earthquake tweet by the British Geological Survey.

In European markets, almost every sector of the Stoxx Europe 600 Index retreated after equities slid from Hong Kong to Sydney as traders prepared for potential news of intercontinental ballistic missile launch by Pyongyang. U.S. stock futures fluctuated, and the dollar edged lower with Treasuries a day after dovish comments from Federal Reserve officials sparked a bond surge. The Bloomberg Commodity Index retreated from the highest since April even as crude oil extended a rally.

“The 10 basis point fall in Treasury yields is clearly not something the European market can ignore,” said Mizuho rates strategist Antoine Bouvet. “The market’s also taking a bit of view on what the U.S. Federal Reserve will do next.”

Asia was also mostly in the red, with the MSCI Asia ex Japan index falling 0.5% and Tokyo’s Nikkei hitting a four-month low closing down 0.1%. South Korea’s KOSPI ended down 0.3% at a near four-week low as did Australia’s ASX. The Hang Seng Index declined 0.5% in Hong Kong on low volumes and China’s equity benchmarks were also lower.

The Rest…HERE

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