Euro­pean stocks re­treat

Malta Independent - - FINANCIAL -

On Mon­day Euro­pean stocks re­treated and U.S. eq­uity fu­tures pointed to a lower open­ing as a risk-off tone took hold of global mar­kets. Trea­suries, the dol­lar and Euro­pean govern­ment bonds all climbed, while the pound weak­ened as Bri­tish Prime Min­is­ter Theresa May found her­self un­der re­newed pres­sure.

Ster­ling fell against all its main G-10 peers fol­low­ing a re­port that as many as 40 Con­ser­va­tive law­mak­ers have agreed to sign a let­ter of no con­fi­dence in May, eight short of the num­ber re­quired to trig­ger a lead­er­ship chal­lenge. The cur­rency’s weak­ness lent sup­port to the FTSE 100 In­dex, but even that erased gains as most Euro­pean gauges slipped and the Stoxx 600 In­dex dropped. Ear­lier, eq­ui­ties in Tokyo deep­ened a de­cline toward the close of the ses­sion amid a red day across Asian eq­ui­ties, though Chi­nese shares bucked the slide. Bit­coin clawed back most of its losses after a ma­jor in­tra­day slump.

Meanwhile, the threat to May’s lead­er­ship comes at a sen­si­tive time for the U.K. leader. The op­po­si­tion Labour Party ac­cused her of lack­ing the sup­port within her Con­ser­va­tive Party to de­liver the Brexit tran­si­tion pe­riod she’s pro­posed.

Else­where, gold and most in­dus­trial met­als rose, and West Texas oil fluc­tu­ated.

The Stoxx Europe 600 In­dex dipped 0.8 per­cent as of 7:19 a.m. New York time, hit­ting the low­est in al­most seven weeks with its fifth con­sec­u­tive de­cline. The MSCI Al­lCoun­try World In­dex de­creased 0.3 per­cent to the low­est in two weeks. The U.K.’s FTSE 100 In­dex de­clined 0.1 per­cent to the low­est in more than six weeks. Ger­many’s DAX In­dex dipped 0.8 per­cent to the low­est in al­most three weeks. The MSCI Emerg­ing Mar­ket In­dex dipped 0.4 per­cent to the low­est in al­most two weeks. Fu­tures on the S&P 500 In­dex fell 0.2 per­cent to the low­est in al­most two weeks.

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