Treasures rallied as U.S. stocks fell on Thursday following rising signs of a global economic slowdown. Contracts on the S&P 500 fell by 0.4% after the index fell to its lowest level in a month on Wednesday. Nasdaq 100 futures as well as those on the Dow Jones Industrial Average lost 0.4%.
Among the indexes that were hardest hit was the Stoxx Europe 600 that plunged by 0.9% on Thursday morning’s early trading session. The 10-year treasury yield also experienced a significant drop to its lowest level since September.
Following the shortlived rally arising from optimism due to China’s economic reopening, stocks have fizzled as economic data exhibiting slowdowns in other regions emerges.
Sailesh Jha, the chief economist and head of market research for RHB Banking Group, offered the following analysis: “This weakness in equity markets will continue a bit longer in this first quarter of the year as the market reprices what the Fed will do.”
Copper declined by 1.2% in London trading, while oil fell for a second consecutive day as U.S. recession worries persist. Spot gold advanced by 0.2% to $1,908.60 per ounce.