World stocks set to fall following six consecutive weekly increases

World stocks fell for a third straight day on Friday on pessimism about global economic growth and trade tensions, putting them on track for their first weekly drop this year, while the U.S. dollar was on track for its biggest weekly gain since August.

MSCI’s gauge of stocks across the globe shed 0.60 percent on the day, and was set to fall for the week following six consecutive weekly increases.

Investors were digesting economic and trade developments from Thursday, when the European Commission sharply cut its forecast for euro zone growth this year and next and President Donald Trump said he did not plan to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.

Trump’s stance rattled investors hoping for a resolution to the months-long trade dispute between the world’s biggest economies. Wall Street shares slumped in response overnight, with the Dow falling 0.9 percent to pull back from a two-month peak scaled midweek on upbeat corporate results.

European stocks slipped again on Friday, following their weakest day in six weeks, as downgrades to growth forecasts weighed and bleak numbers from Umicore, Skanska, and Rockwool outweighed a sales beat at L’Oreal. The index was on track for its worst week in six.

Overall, Europe is on track for its weakest quarter for earnings growth in three years, but investors have been more forgiving to companies with valuations low and expectations at rock bottom.

MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.5 percent, easing back from a four-month peak touched the previous day. The index was down 0.1 percent on the week.

Oil prices were little changed on the day, but were heading for a weekly loss on renewed concerns about slowing global demand. U.S. crude rose 0.15 percent to $52.72 per barrel and Brent was last at $62.07, up 0.71 percent on the day.