World stocks lower on US-China trade worries and political tension in Italy
The MSCI All-Country World Index drifts lower on trade worries as the dollar hits a three-week high, while Italian government worries hit bonds and bank stocks
London — World stocks drifted lower on Friday as the latest exchange of trade threats between the US and China dampened risk appetite, while Italian bonds and shares in the country’s banks sold off on signs of renewed government tensions in Rome. The MSCI All-Country World Index, which tracks shares in 47 countries, was down by 0.1% after the start of European trading, and set to break a four-week streak of gains. While a tech-led rally on Wall Street overnight filtered through to Asian stock markets, gains were capped by the trade tensions. MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.05%, though it was down more than 0.5% on the week. The trade row between the world’s top two economies intensified mid-week after US President Donald Trump raised pressure on China by proposing a higher 25% US tariff on $200bn worth of Chinese imports. Beijing vowed to retaliate. Investors were also cautious before the July US jobs report due later in the day. This will give a ...
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