MSCI’s gauge of stocks across the globe skidded 0.39% to 842.18
Global stocks dropped on Thursday, weighed by weak trading in equity markets across the world, while oil prices climbed, buoyed by rising geopolitical tension amid the Middle East conflict.
Asia-Pacific shares outside Japan had earlier declined 1.3% overnight, largely driven by Hong Kong stocks sagging after a strong rally, with several markets, including mainland China and South Korea, shut for the day.
Nikkei, however, ended up almost 2% after Japan’s newly elected prime minister Shigeru Ishiba said it was not the time to raise interest rates after meeting with BoJ Governor Kazuo Ueda.
In the U.S, Wall Street’s main indexes closed lower after trading marginally up early in the session. Data released on Thursday showed rising US jobless claims, indicating labour market softness, but strong service-sector activity. The closely watched nonfarm payrolls report for September is due on Friday.
The DJIA dropped 0.44% to 42,011.59, the S&P 500 slipped 0.17% to 5,699.94 and the Nasdaq Composite stumbled 0.04% to 17,918.48.
European stocks finished down 0.93% as investors digested weak business activity survey data from the bloc. MSCI’s gauge of stocks across the globe skidded 0.39% to 842.18.
Brent crude futures settled up 5.03% at $77.62 a barrel.
The fact that energy is up where everything else is down pretty significantly is an indication that today’s move is a lot about the escalating conflict in the Middle East, said James St. Aubin, chief investment officer at Ocean Park Asset Management in Santa Monica (US).
There is probably some trepidation or maybe some hesitation about putting money to work ahead of tomorrow’s jobs report, he said.
Gold prices were flat as the US dollar firmed against major currencies. Spot gold slid 0.01% to $2,657.24 an ounce, while US gold futures settled 0.4% higher at $2,679.2.
In currencies, the US dollar index rose to a six-week high, reaching 102.09, the highest since August 19. It last rose 0.33% to 101.98. The euro was slightly down at $1.1026, and not far from Wednesday’s low of $1.10325, a level last seen on September 12.
Sterling declined 1.1% to $1.3122 after BoE Governor Andrew Bailey told the Guardian newspaper that the central bank could become a “bit more aggressive” on rate cuts if inflation continued to drop. Against the Japanese yen, the dollar firmed 0.1% to 146.61.
