World stocks poised for worst month since January
LONDON —European stocks and the pound held on to a third day of gains as the immediate market flurry over Britain’s vote to pull out of the European Union settled. The rebound was not enough, however, to offset the sharp losses suffered in the aftermath of last week’s vote which have put global stocks on track for their worst monthly performance since January. Renewed concerns over global growth and oversupply have also forced oil prices onto the back foot again. Wall Street shares were expected to open up 0.2 percent, following the lead from European and Asian markets.
The MSCI All-Country World index. MIWD00000PUS was up 0.3 percent, but is set to end the month down 1.6 percent, its worst month since a troubled start to the year. It will also be the first time since 2011 that global stocks will have fallen for two successive quarters. Worries that a weaker Chinese yuan could spark deflation, seen as a key reason for the worst beginning to the year for global stocks, were reignited on Thursday after Reuters reported that China’s central bank was willing to let the currency fall further. “Since the beginning of the year investors have faced a series of macro changes to the investment landscape,” said Sean Darby, chief global equity strategist at Jefferies, adding that Britain’s decision to leave the European Union last week was only the most recent shock to investor confidence. The two-day selloff in the aftermath of last week’s vote wiped more than $3 trillion off the value of global stocks.—Reuters