Global stocks decline amid macroeconomic worries

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The market is in a tug of war between investors who see opportunities and those who are focused on the difficult economic backdrop

Singapore/London — US Treasury yields held near multiyear highs on Friday, with markets seeing no let-up in tightening from the Federal Reserve, causing shares to slip and the dollar to stay strong, particularly against the embattled Japanese yen.

“It’s all so tenuous... The problem is the macro environment still remains difficult,” said Shane Oliver, chief economist at AMP Capital, adding that the market is in a tug of war between investors who see opportunities and those who are focused on the difficult backdrop. “This rate environment continues to doubts the sustainability of any rally in equities, and chances that the dollar will receive more safe-haven flows are elevated,” said Francesco Pesole foreign exchange strategist at ING in a note to clients.

Chinese blue chips slid 0.3%, with China watchers waiting for Sunday when members of the ruling Communist Party’s elite Politburo Standing Committee are set to be unveiled at the conclusion of its twice-a-decade congress. Xi Jinping is set to clinch a third five-year term as China's leader.Higher US yields were also being felt in currency markets, where the yen weakened to a fresh 32-year low of 150.64 per dollar and was heading for its 13th straight session of declines.

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