Global stocks are heading for biggest drop in two weeks
Hong Kong and China are the main losers in Asia as the US Fed is still on track to gradually hike rates
London — Global stocks were heading for their biggest drop in two weeks and emerging-market currencies also slipped on Friday as a confident US central bank and weak Chinese data hit demand for risky assets. MSCI’s gauge of stocks across the globe fell 0.5%, its biggest drop since October 26, as the US Federal Reserve held interest rates as expected, but indicated that another rate increase is likely in December. While the decision to hold rates was anticipated by the markets, some participants had expected a more cautious approach from the central bank after a stock market rout in October. But the Fed indicated a December increase is a distinct possibility in a robust economy. This contrasts sharply with China, where cooling producer price inflation and falling car sales suggested an economy struggling to gain traction. “Worries about trade wars and how the slowdown in China will impact the rest of the world mean stocks appear to be more risky, so there’s a typical risk-off move in...
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