World shares stall as the dollar extends its power surge
The European bourses and euro are hit by more weak German data as the European Commission slashes Italy’s growth forecast
London — World shares ground to a halt on Thursday as the dollar scored its longest winning streak since a hot run in early October that helped set off a wave of global “bear” markets. Some poor earnings and weak data out of Germany ensured Europe’s main bourses started lower and kept MSCI’s main index of world stocks heading for only its second two-day run of falls of the year so far. The extent of the current slowdown in the global economy was highlighted as India unexpectedly cut its interest rates and the euro got hit to $1.1346 by Germany’s fourth consecutive drop in industrial output. That only compounded the 1.3% the euro has lost over the past week and the tailwind behind the dollar, which has risen every day since Friday’s strong US jobs data. It has also recovered almost all the losses suffered after the US Federal Reserve all but abandoned plans for more rate hikes last month. “Another day, another piece of terrible German data. Euro/dollar risks a move to $1.1300,” said ...
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