Markets extend declines
On Friday stocks in Europe extended declines after a terrorist attack in Barcelona added to unease about U.S. policy paralysis and lingering tensions over North Korea. Airlines and hotels led the decline of the Stoxx Europe 600 index along with banks, as industries across the board got caught in the downturn. S&P futures were flat, signaling U.S. markets may steady after the underlying index plunged 1.5 percent Thursday.
Investors pulled $1.3 billion from equity funds in the week ending 16 August as tensions over the Korean peninsula escalated, according to EPFR Global data. Outflows from U.S. stock funds were triple that, suggesting doubts about Trump’s stimulus plans are an additional worry. Heightened terror fears added to the malaise after at least 13 people died when a van plowed into pedestrians in Barcelona Thursday.
The fallout from Trump’s remarks on violence in Charlottesville continues to raise questions over his ability to retain his team and focus on the economic agenda. Speculation that his top economic aide, former Goldman Sachs Group Inc. executive Gary Cohn, was poised to resign roiled markets on Thursday until reports that he’d opted to stay on board steadied the ship.
The Stoxx Europe 600 Index sank 0.9 percent as of 11:19 a.m. in London. The MSCI All-Country World Index fell 0.3 percent to the lowest in almost five weeks. Germany’s DAX Index dipped 0.6 percent. The U.K.’s FTSE 100 Index tumbled 1 percent. The MSCI Emerging Market Index decreased 0.6 percent. Futures on the S&P 500 Index were little changed after swinging between gains and losses. Gold climbed 0.5 percent to $1,295.13 an ounce, the strongest in more than nine months. West Texas Intermediate crude gained 0.2 percent to $47.20 a barrel.
Japan’s Topix index fell 1.1 percent at the close, down 1.2 percent over the week. Australia’s S&P/500 Index ended 0.6 percent lower. The MSCI Asia Pacific Index lost 0.5 percent, paring gains for the week.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.