Four-day rally over as global markets slump
‘Trump’s triple tightening’ of a stronger dollar, tighter monetary policy and trade tariffs are slowing growth and raising risks
London — World stocks slipped on Monday, halting a four-day recovery rally as anxiety surrounding global trade conditions and rising US interest rates dampened risk appetite. European shares followed Asia lower as investors readied for US congressional mid-term elections on Tuesday, while sterling briefly climbed on a newspaper report that a Brexit agreement was imminent. Oil prices fell as the reimposition of US sanctions against Iran’s fuel exports was softened by waivers that will allow some countries to still import Iranian crude, at least temporarily. US stock futures were down 0.3% amid concerns a trade deal between the US and China may not be struck soon. “After a four-day rally people tend to become a bit exhausted — and just generally I feel like everyone’s on hold until the (end-November) G20 and also the Fed coming up,” said Gregory Perdon, CIO at Arbuthnot Latham. “Our sense is absolutely that there’s a lot of cash on the sidelines right now.” Overnight, MSCI’s broadest ...
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