Concerns over global slowdown sees investors shun risky assets
Investors are generally gloomy about economic growth, fueled by the US-China impasse and poor European corporate results
London — Renewed concerns about a global economic slowdown continued to sap investor appetite for assets considered risky, dragging global stocks and bond yields lower on Wednesday, while the dollar held near three-week highs. Trading was choppy overnight as hopes of more stimulus measures from China to shore up economic growth clashed with worries over progress between Washington and Beijing to resolve a trade spat between the world’s top two economies. The MSCI world equity index, which tracks shares in 47 countries, was down 0.1%. “The main culprit for the risk-off tone this morning is the change in sentiment around US-China trade talks ... that seeped into Asia overnight and Europe this morning,” said Edward Park, deputy chief investment officer at Brooks Macdonald. The mood soured overnight after a report in the Financial Times that the Trump administration had rejected an offer from China for preparatory trade talks this week ahead of high-level negotiations scheduled for next...
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