LONDON: World stocks struggled and safe haven bets were back in play on Friday with German bond yields plumbing record lows as Chinese data rekindled woes about the health of the global economy and fears of a new U.S.-Iran confrontation intensified.
The pan-European STOXX 600 index fell 0.7per cent - its biggest daily decline in two weeks. Germany's trade-sensitive DAX fell 0.9per cent. U.S. stock futures indicated Wall Street was in line for a lower open, with the S&P e-mini pointing to a 0.3per cent fall. "There is a large degree of uncertainty going into next week's FOMC meeting as market reaction will differ significantly depending on whether the Fed hints toward easing policy," said Shusuke Yamada, chief Japan FX and equity strategist at Bank Of America Merrill Lynch.Growing worries about a new U.S.-Iranian confrontation after two attacks on two oil tankers in the Gulf of Oman on Thursday added to the unhappy mood.