Global markets slip as investors await US data
SINGAPORE: Global markets struggled on Thursday, with stocks retreating and the dollar losing momentum as investors turned cautious ahead of critical US economic data.
Oil prices also slid, with Brent crude and US crude futures both falling more than 2 per cent amid speculation over a potential US-Iran nuclear deal that could add significant supply to global markets. Meanwhile, US Treasury yields remained elevated, with the benchmark 10-year yield hitting a one-month high, partly driven by concerns over President Donald Trump's budget proposals, which would add trillions to the US debt.
Earlier in the week, markets had rallied on news of a US-China tariff truce and high-profile investment deals from the Middle East, but the optimism began to fade by Thursday. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.15 per cent, while Wall Street futures dipped after modest overnight gains.
"The market feels like it's recovering from a party," said Tony Sycamore, a market analyst at IG. "Investors are hesitant to push stocks higher, with lingering doubts about global trade policies and economic stability."
In Europe, futures pointed to a subdued start, with EUROSTOXX 50 down 0.17 per cent, DAX futures off 0.23 per cent, and FTSE futures largely flat. Asian markets also struggled, with Japan's Nikkei down 0.85 per cent, China's CSI300 sliding 0.63 per cent, and Hong Kong's Hang Seng Index losing 0.55 per cent.
Currency markets remained volatile, with the US dollar slipping 0.55 per cent against the yen to 145.99 and falling more than 0.8 per cent against the Korean won to 1,395.52. The euro, meanwhile, edged up 0.2 per cent to $1.1193.
Investors are now looking to US retail sales data and Walmart's earnings later in the day for further clues about the strength of the US consumer, a key pillar of the world's largest economy. Federal Reserve Chair Jerome Powell is also set to speak, with markets keenly watching for any hints on the central bank's interest rate outlook.
Spot gold was down 1.2 per cent to $3,141.16 an ounce as investors sought clarity amid the mixed signals in global markets. — Reuters
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