Tuesday, November 5, 2024

Stocks wobbled on economic fears and sharp rate hikes in New Zealand

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By Tara Ranasinghe

LONDON, April 5 – Global stock markets fell on Wednesday on signs of a weakening economic outlook, while the dollar rebounded to a two-month low.

* New Zealand’s Reserve Bank raised rates by 50 basis points to 5.25%, the highest level in 14 years, a reminder that the world’s central banks have yet to tighten monetary policy.

* European stocks fell and the STOXX 600 index hit its one-month high on Tuesday. US stock futures fell and Japan’s Nikkei fell 1.6% in its biggest daily percentage drop since mid-March.

* The MSCI index of world shares fell further from a near seven-week peak hit on Tuesday, while trade in Asia was weighed down by a holiday in Hong Kong and China.

* Weak U.S. economic data fueled recession fears this week, dampening recent stock gains.

* Data on Tuesday showed U.S. job openings fell to a nearly two-year low in February, while data on Monday indicated weakening U.S. manufacturing activity.

* The euro zone’s recovery accelerated last month, but the rebound was uneven across sectors and countries, a survey showed on Wednesday.

* The dollar index rose from a two-month low and the currency hit its lowest level since August 2021 against the Swiss franc at $0.9042. The greenback also advanced against the euro and sterling.

* Interest-bearing gold hit a fresh one-year high above $2,000 an ounce, then rose 0.13% to $2,023 an ounce.

* Brent crude was little changed at $84.95 a barrel. US West Texas Intermediate crude was also around $80.73 a barrel.

(Reporting by Tara Ranasinghe; Editing in Spanish by Ricardo Figueroa)

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