Trade fears, growth woes haunt global stocks as bond yields slide

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World stocks hovered near four-week lows on Thursday and yields on major benchmark bonds slipped after Washington moved to impose new tariffs on ...

LONDON: World stocks hovered near four-week lows on Thursday and yields on major benchmark bonds slipped after Washington moved to impose new tariffs on European goods, fuelling fears about global growth and dousing risk appetite.

But a reduction in the initial list propped up some sectors with the pan-regional STOXX 600 index up 0.2per cent, torn between falls in financials and gains in luxury goods stocks. France's CAC index rose 0.7per cent while Britain's FTSE 100 fell 0.5per cent. German bourses - a weather vane for exports - were closed for a national holiday.

"Risk aversion is broadly on the rise and that has been triggered by the weakness in U.S. manufacturing ISM data earlier this week," said Manuel Oliveri, an FX strategist at Credit Agricole in London. Bets on a rate cut could rise further if a U.S. non-farm payrolls report on Friday shows weakness in the labor market.In currency markets, the dollar dipped to one-week lows against the euro and yen. The greenback crossed 107 Japanese yen and touched a week low of 106.95 yen before recovering some ground. It fell to US$1.0973 per euro . The dollar index slipped 0.1per cent.

 

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