In­vestors shy away from risky as­sets

The Star Early Edition - - PRICES -

US TREA­SURY yields and the dol­lar dropped to seven-month lows yes­ter­day and world stocks slid as po­lit­i­cal un­cer­tainty from the US to the Mid­dle East and weak­ness in com­mod­ity mar­kets pushed in­vestors away from risky as­sets.

The yen and gold also gained amid pre­vail­ing cau­tion as an Arab rift opened up around Qatar, and ahead of tes­ti­mony from the for­mer head of the FBI, a Bri­tish elec­tion and the Euro­pean Cen­tral Bank’s next move, which all hap­pen to­mor­row.

Wall Street was lower for a sec­ond day af­ter both Euro­pean and Asian stocks dropped dur­ing their ses­sions.

The Dow Jones In­dus­trial Av­er­age fell 31.09 points, or 0.15 per­cent, to 21 152.95 points, the S&P 500 lost 5 points, or 0.21 per­cent, to 2 431.1 points and the Nas­daq Com­pos­ite dropped 6.70 points, or 0.11 per­cent, to 6 288.98 points.

“We’ve had a lit­tle bit of a cool­ing off in equities fol­low­ing the break­ing of links with Qatar – a lot of peo­ple think it may force oil prices lower and re­move some of the in­fla­tion­ary pres­sures,” said RBC econ­o­mist Cathal Kennedy.

The pan-Euro­pean FTSE-urofirst 300 in­dex lost 0.66 per­cent and MSCI’s gauge of stocks across the globe shed 0.25 per­cent.

The broad Euro STOXX 600 was down 0.7 per­cent while Ger­man stocks were down 1.05 per­cent.

In Asia, MSCI’s broad­est in­dex of Asia-Pa­cific shares out­side Ja­pan closed 0.2 per­cent lower, while Ja­pan’s Nikkei lost 0.95 per­cent.

US crude fell 0.38 per­cent to $47.22 (R602.30) per bar­rel and Brent was last at $49.19, down 0.57 per­cent on the day. – Reuters

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