European Equities Lower as Bonds Gain

European stocks dropped and a gauge of emerging-market shares headed for a three-month low as government bonds rose. The Australian dollar strengthened as a China factory gauge unexpectedly advanced.

The Stoxx Europe 600 Index dropped 0.4 percent by 8:22 a.m. in London, with the MSCI Emerging Markets Index sliding 0.3 percent toward its lowest close since June 5. Standard & Poor’s 500 Index futures fell 0.1 percent. Copper climbed 0.4 percent after a gauge of commodities closed at the lowest since July 2009 yesterday. Australian bonds rallied while the local dollar strengthened 0.3 percent from a seven-month low. The yen advanced 0.2 percent.

The so-called flash purchasing managers index rose to 50.5 from a reading of 50.2 in August, HSBC Holdings Plc and Markit Economics said. A similar gauge in France showed a slower-than-estimated contraction. About $574 billion was wiped from the value of global equities yesterday after China’s Finance Minister Lou Jiwei damped speculation leaders in Asia’s biggest economy will implement large-scale stimulus. Factory indexes for the U.S. and euro area are also scheduled.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.