Indexes and oil continue to fall, as yen and gold grow - market wrap

Global stocks retreated and the yen strengthened as crude oil tumbled into a bear market on concern a global supply glut will persist. Shanghai equities advanced after MSCI Inc. added China’s domestic stocks to its emerging- markets index.

European shares fell for a second day while Australian equities erased their gain for the year as oil slid more than 20 percent from its high for the year. The yen strengthened on haven demand while the British pound weakened for a third day, trading near the lowest since April. The Shanghai Composite Index rose after fluctuating throughout the day, while Hong Kong shares retreated. Gold advanced after a five-day selloff.

Here are the main moves in markets:
Stocks
- The Stoxx Europe 600 lost 0.6 percent as of 8:22 a.m. in London, with financial shares leading the way.
- The Shanghai Composite rose 0.5 percent, after falling as much as 0.2 percent and rising as much as 0.5 percent. Hong Kong’s Hang Seng and the Hang Seng China Enterprises Index each fell about 0.6 percent.
- Australia’s S&P/ASX 200 Index slumped 1.6 percent to the lowest since Feb. 9, with BHP Billiton Ltd. and Rio Tinto Ltd. sliding at least 2.9 percent.
- Japan’s Topix fell 0.4 percent, after climbing for three days to the highest level since August 2015.
- The MSCI Emerging Markets Index slid 0.6 percent. ADRs for YPF SA, Argentina’s state-run oil producer, slumped 10 percent in after-hours U.S. trading amid disappointment over MSCI’s decision. Grupo Financiero Galicia SA lost 5.8 percent.
- Saudi Arabia’s Tadawul All-Share Index climbed 1.7 percent.
- Contracts on the S&P 500 dropped 0.3 percent. The gauge’s retreat on Tuesday was led by energy stocks and consumer discretionary producers, which slumped 1.3 percent.

Currencies
- The British pound dropped 0.2 percent to $1.2608. The currency lost 0.9 percent on Tuesday after Bank of England Governor Mark Carney said he is still worried about the impact of Brexit on the economy. The euro was flat at $1.1135, after two days of declines.
- The yen rose 0.3 percent to 111.14 per dollar, after gaining
0.1 percent on Tuesday. It had retreated 0.6 percent the previous session. The Australian dollar lost 0.3 percent, dropping for a third day. The Korean won tumbled 0.8 percent to the weakest level since April.
- The Bloomberg Dollar Spot Index was flat after rising 0.3 percent on Tuesday and 0.4 percent the previous day. The measure touched the lowest level since October last week.

Commodities
- West Texas oil fell 0.3 percent to $43.40. Futures tumbled more than 2 percent on Tuesday, touching the lowest since August.
- Gold rebounded 0.3 percent to $1,246.18 an ounce, after falling for five straight days.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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