World Economy

Global Stocks Slip as Investors Mull Growth

Global Stocks Slip as Investors Mull GrowthGlobal Stocks Slip as Investors Mull Growth

US equity futures pointed to a lower open and European stocks fell on Monday as investors digested warnings from the world’s financial leaders about the impact of protectionism on growth. The yen rose and Japanese government bonds slid amid speculation over Bank of Japan stimulus.

Futures on the Dow, S&P 500 and Nasdaq were in the red in the wake of warnings from finance chiefs from the Group of 20 nations on Sunday that trade tensions threaten expansion as leading economies fall out of sync, Bloomberg reported.

The Stoxx Europe 600 Index retreated after sudden changes in leadership at Fiat Chrysler helped sink carmakers, while travel companies also declined after Ryanair posted a 20% decline in first-quarter profit.

Japanese 10-year government bonds plunged, sending the yield up the most in almost two years, while the yen rose on reports of possible changes to the nation’s ultra-loose monetary policy. That spurred the central bank to offer to buy an unlimited amount of securities in a fixed-rate operation. Treasuries climbed and the dollar was steady, while European bonds were mixed and the yuan slipped.

Blue-chip stocks in the UK pulled back Monday, with concerns about global trade tensions weighing on sentiment, MarketWatch reported.

The FTSE 100 index was down 0.4% at 7,648.35, led lower by consumer goods and basic materials stocks, but the telecom sector moved up. The index on Friday slipped 0.1% but ended with its second straight weekly gain.

The pound traded at $1.3130, barely budging from $1.3132 late Friday in New York. The pound has recovered ground after last week’s drop below $1.30 for the first time in 10 months after weak UK retail sales data spurred doubts that the Bank of England will raise interest rates at its Aug. 2 meeting. Against the euro, the pound bought €1.122, up from €1.120 at last week’s finish.

Bank stocks were mostly lower, with Lloyds Banking Group PLC down 0.4%, and Royal Bank of Scotland Group shedding 0.4%. Barclays was down 0.8%, while Asia-focused lenders were mixed, with HSBC Holdings up 0.2% while Standard Chartered fell 0.7%.

BT Group PLC shares rose 0.7% after the UK government outlined plans to boost full-fiber connectivity, aiming to have coverage across the entire country by 2033. Off the main benchmark, shares of TalkTalk Telecom Group gained 0.8%.

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