Global equities and bonds slide on growth jitters

Global stocks fell on Wednesday after faltering growth in China and Europe heightened concerns about broader economic momentum, while the dollar firmed as investors weighed up the outlook for Federal Reserve interest rates. MSCI’s broadest gauge of world stocks had slipped 0.1percent by 8.45am GMT. European stocks declined, extending losses for a sixth consecutive session, dragged lower by global economic slowdown fears and higher crude prices. The pan- European Stoxx 600 index was at a week’s low of 0.8percent by 8.45am GMT. German industrial orders fell more than expected in July, the federal statistics office said. Eurozone construction PMIs and retail sales data is due later in the day. In Asia, the Hang Seng index closed down 150 points and China’s benchmark CSI300 Index fell 0.22percent , on expectations that China’s exports contracted at a slower pace in August. Chinese investor sentiment also wavered after a privatesector survey on Tuesday showed services activity expanded at the slowest pace in eight months in August, reflecting weak demand.“Key risks that could undermine equity sentiment in September include developments in China’s property market and potential increases in food and energy prices,” said Bruno Schneller, an MD at INVICO Asset Management. China is also set to release lending and inflation data in coming days. Another concern, Schneller said, was any deliberations on further oil production cuts, which could reignite inflationary concerns and dampen investor confidence.