Global stocks fall on concerns of pro-growth US policies and higher interest rates were on hold
US stocks fell on Tuesday with Far East and European shares maintaining negative sentiment on Wednesday, as investors turned to safe-haven Treasuries and Gold on rising concerns about President Trump’s pro-growth policies and higher US interest rates were on hold.
Strong sell-off send US benchmark indices significantly lower, with S&P500 for June delivery posting the biggest one-day losses since 11 Oct 2016, on fall of 1.2% and S&P Financial sector falling 3.1% on Tuesday.
Dow Jones registered the same loss percentage, while Nasdaq 100 June contract delivery was down 1.5% on Tuesday.
US indices remain under strong pressure in early Wednesday’s electronic trading, with global stocks being under increased pressure on Wednesday.
Japan’s Nikkei 225 index for June delivery was down 0.8% from Wednesday’s opening, extending losses of 1.35% previous day.
MSCI’s world equity index was down around 0.6%.
European indexes remained under strong pressure on Wednesday. German DAX hit fresh three-week low after opening on Wednesday, following heavy losses of 1.3% that the index registered on Tuesday.
Britain’s FTSE100 index fell to the lowest since end of February, losing 0.3% in early Wednesday’s trading, in extension of Tuesday’s 1.03% loss.
French CAC40 was down 0.14% in early Wednesday, following loss of 0.72% on Tuesday.
Negative sentiment is likely to persist, as fundamental outlook is supported by weakening technical studies, however, profit-taking on strong fall could be also considered in the near-term.