Stocks slip as investors fret about trade tension dominating G-7 summit
Global shares fall as renewed talk of monetary tightening by major central banks weighs on risk sentiment
London — World stocks slipped on Friday as the expectation of trade tensions dominating this weekend’s summit of Group of Seven (G-7) countries, along with renewed talk of monetary tightening by major central banks, weighed on risk sentiment. The MSCI All-Country World index, which tracks shares in 47 countries, was down nearly 0.5% in morning trade in Europe — although it was still set to break a three-week streak of losses. The fear of a trade war, the expectation of more rate hikes in the US and a wind-down of a massive monetary stimulus in Europe fuelled a risk-off tone in markets, investors said. The US Federal Reserve is widely expected to raise interest rates for a second time this year next week. The focus is on whether it will hint at raising rates four times in 2018. European Central Bank (ECB) policy makers meeting on June 14 will debate whether to end bond purchases later this year, the bank’s chief economist said this week, in a hawkish message that sent the euro to a t...
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