NEW YORK (Reuters) – Global stocks fell on Friday after a week of mixed economic data and fears about stable growth and Asian markets emphasized the US Federal Reserve’s timetable for reducing purchases of assets.
US stocks ended sharply lower in a broad selloff on Friday. All three major US stock indexes lost ground, with the Nasdaq Composite Index rising as rising US Treasury yields put pressure on market-leading growth stocks.
The yield on 10-year U.S. Treasuries briefly touched 1.3855%, its highest level since July 14, while the dollar hit a three-week high.
The gauge of MSCI stocks across the globe fell 0.71%, while the pan-European STOXX 600 index closed 0.9% lower for a third consecutive week of losses. So far this month, the STOXX is down around 2%.
The largest MSCI index of Asia-Pacific equities excluding Japan rose 0.29%.
Investors are hoping that the Fed’s meeting next week will provide more clarity on its plan to slow asset purchases and when it could raise interest rates.
Shares of struggling real estate developer China Evergrande, which has two trillion yuan ($ 310 billion) in liabilities and faces an $ 80 million bond coupon payment next week, fell 30% this past week. week.
Concerns grow that a potential US corporate tax hike could erode profits as Main Democrats and President Joe Biden seek to raise the corporate tax rate to 26.5 %, compared to 21% currently.
“Fear seems to be coming back to the market, and that can be a healthy dynamic,” said Callie Cox, senior investment strategist at Ally Invest. “We wouldn’t be surprised to see a decline here.”
The Dow Jones Industrial Average lost 166.44 points, or 0.48%, to 34,584.88; the S&P 500 lost 40.76 points, or 0.91%, to 4,432.99; and the Nasdaq Composite lost 137.96 points, or 0.91%, to 15,043.97.
The yield on 10-year Treasuries rose 3.9 basis points to 1.3702%.
The yield on German 10-year government bonds, the benchmark for the euro area, was -0.280% after rising 3.5 basis points to a two-month high of -0.277%, after that a Financial Times report suggested that the European central bank plans to meet its inflation target of 2% by 2025.
Stronger-than-expected US retail sales data on Thursday boosted the dollar, which held steady near the previous day’s three-week high against a currency index.
The dollar index, an indicator of the greenback’s value against six major currencies, rose 0.387%, its highest since late August.
The euro fell 0.32% to $ 1.1726.
Spot gold fell 0.1% to $ 1,752.48 an ounce. US gold futures fell 0.26% to $ 1,749.40 an ounce.[GOL/]
US crude recently fell 64 cents to $ 71.97 per barrel, and Brent came in at $ 75.34 per barrel, down 33 cents on the day.
Reporting by Elizabeth Dilts Marshall; Editing by Andrew Heavens, Nick Zieminski and Richard Chang