World stocks at two-week low as growth worries weigh

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Rate hike guidance from the European Central Bank and jitters over upcoming US inflation data stoked concerns about global growth

Stock market news is displayed on a television at the Nasdaq MarketSite in New York, US. File photo: BLOOMBERG/AMIR HAMJAWorld stocks hit a two-week low on Friday as rate hike guidance from the European Central Bank and jitters over upcoming US inflation data stoked concerns about global growth, while verbal intervention from Japan boosted the yen

US stock index futures ticked up 0.19% after the S&P 500 and Nasdaq fell more than 2% on Thursday in their biggest daily percentage declines since mid-May.It was the 17th week in a row of outflows for European equities in the week to Wednesday, according to BofA, with $2.1bn leaving the space, as the sector has been hit hard by the Russia-Ukraine war.

The dollar fell 0.64% to 133.48 yen after Japan’s government and the central bank said in a statement they were “concerned” about recent sharp yen declines and stood ready to respond as needed on currency policy. The two-year US Treasury yield, which rises with traders’ expectations of higher Fed fund rates, continued its climb to hover around the highest level since early May. It touched 2.8352% compared with a US close of 2.817%.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.9%, weighed down by a 1.2% drop in resources-heavy Australia and a 1.1% retreat in South Korea. Japan’s Nikkei fell 1.5%.

 

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