Major national equities in european region down

Global stocks took another leg down on Thursday in the wake of Federal Reserve minutes that painted a healthy picture of the world’s biggest economy, raising the prospect of tighter monetary policy. The dollar was steady and Treasuries rose.

The Stoxx Europe 600 Index slid as all the major national equity gauges in the region fell. Earlier in Asia most shares retreated, though China’s market bucked the trend as it reopened after a holiday. Futures on the S&P 500 Index declined before erasing the drop. The Treasury move pared some of Wednesday’s slide following the minutes from the Fed’s January meeting, which showed increasing confidence growth will pick up despite concerns around inflation.

For now, markets remain fragile. February is shaping up as one of the worst months for global equities in more than a year as concerns about a pick-up in inflation and expensive stock prices outweigh evidence of a buoyant U.S. economy. With recent data underpinning the view that inflation is no longer lagging, the OIS space shows traders pricing in just shy of three U.S. rate hikes over the next 12 months.

Elsewhere, gold retreated alongside most commodities. The pound was weaker as data showed the U.K. economy expanded less than previously estimated in the fourth quarter.

The Stoxx Europe 600 Index sank 0.7 percent as of 11:13 a.m. London time, the largest decrease in almost two weeks. Futures on the S&P 500 Index rose 0.1 percent, the biggest advance in a week. The MSCI Asia Pacific Index sank 0.8 percent on the largest decrease in almost two weeks. The U.K.’s FTSE 100 Index sank 1 percent to the lowest in more than a week on the biggest dip in almost two weeks. The MSCI Emerging Market Index sank 1.1 percent, the largest tumble in almost two weeks.