Global shares dropped for a third straight day
Global shares dropped for a third straight day on Friday and were set to post their first weekly loss in seven, as investors worried about a broadening global economic slowdown and the lack of any sign of a resolution to the U.S.-China trade row.
U.S. 10-year Treasury yield hitting its lowest point in a week, close towards zero percent mark.
Global share index set for weekly loss
Weak earnings for European stocks although most major indices climbed into the black for the day, putting the pan-European STOXX 600 in positive territory. Spain’s IBEX fell half a percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan shedding half a percent, easing back from a four-month peak touched the previous day.
The Bank of England on Thursday said Britain faces its weakest economic growth in a decade this year, as uncertainty over Brexit.
The 10-year U.S. Treasury yield extended its overnight decline to a one-week low of 2.643 percent. The 20-year Japanese government bond yield dropped to a 27-month trough of 0.400 percent.
The 10-year German bund yield fell to 0.105 percent on Thursday, its lowest since November 2016 after the European Commission’s sharp cuts to growth and inflation forecasts.
The euro was on course for its biggest weekly loss in more than four months against the dollar, though traders seemed to be puzzled that it was finding support. The single currency was 0.1 percent lower on the day at $1.13240 after dropping to a two-week low of $1.1325 the previous day.
It was on track for a 1 percent weekly loss.
Against a basket of currencies, the dollar was 0.15 percent higher.
The Australian dollar was on course to end a bearish week firmly on the back foot, last trading down 0.25 percent at $0.7083.
U.S. crude futures slipped half a percent to $52.39 per barrel, extending losses after dropping 2.5 percent in the previous session. Brent crude was down 0.3 percent at $61.47 per barrel.