World Stocks on Longest Slide Since November as Fed Caution Hits

(From Reuters)

Shares were stuck on their worst run since November on Monday, as caution gripped traders in a week in which the Federal Reserve is likely to raise U.S. interest rates and perhaps signal as many as three more hikes lie in store this year.

A near 1 percent drop for Europe’s main bourses <0#.INDEXE> amid a flurry of gloomy company news [.EU] and weaker Wall Street futures ESc1 meant MSCI’s main 47-country world stocks index .MIWD00000PUS was down for a fifth day running.

Japan’s Nikkei .N225 ended down almost 1 percent in Asia too as its exporters were hit again by broad-based strength in the yen which was up for a third session in the last four in a lively currency market. JPY=

The dollar made ground on the euro, though, as bond traders saw the gap between 10-year German and U.S. government yields, referred to as the ‘transatlantic spread’, ratchet out to its widest since December 2016. DE10YT=RR US10YT=RR.

Click here for article.