Asia-Pacific Markets
Hong Kong’s HSI lost 1.9%, its largest decline in two months, on Thursday morning. Central Banker Zhou Xiaochuan noted that debt levels were very high, sending stocks lower.
The China A50 dropped 0.8%, while the Nikkei 225 slid 1%.
Fears that a sudden collapse of equity prices due to inflated debt and credit markets have amplified. Xiaochuan said that China need to protect themselves against corporate and housing debt.
The comments sent global stocks lower as investors feared the rally which took equities to all-time highs may be over.
The Japanese yen, a safe-haven asset investors swarm towards in times of uncertainty, rose 0.5% against the US dollar.
The news overshadowed the positive Chinese data, which showed a 6.8% growth for the nation last quarter.
The Kiwi was the biggest mover in currency markets, sliding 1.9% against the dollar. The New Zealand dollar declined thanks to reports that a centre-left coalition would form a government.
European Markets
The euro is 0.4% stronger against the dollar, despite the heightened tensions in Catalonia. The single currency shock off reports that Spain would forge ahead with suspending Catalonia’s sovereignty.
Equities were much more perturbed by the political spat, broadly declining in Thursday’s trading session.
Spain’s index, the IBEX 35 slid 0.8% and Italy’s FTSE MIB gave up 1.2%. The eurozone’s proxy, the DAX 30, lost 0.9%, while France’s CAC 40 declined by 0.6%.
The pound slumped thanks to disappointing retail data. Sterling is now 0.61% weaker against the single currency.
The UK’s proxy, the FTSE 100, dropped by 0.5%.
US Markets
The dollar is 0.2% down against a basket of its peers, as the debate on US tax reform gets underway. The stronger euro channelled bullish bets away from its substitute, the greenback.
US equities have not escaped the bearish tones, with most stocks caught in a sea of red. While the negative sentiment crept in from Europe and China, the sell-off is also being supported by worse-than-expected earnings from Unilever (LON:ULVR) and SAP SE (DE:SAPG).
Commodity Markets
Oil prices weakened after US inventories showed an increase in gasoline storages.
Brent oil, the international benchmark, dropped 1.6%, while the US proxy, Crude oil, dipped 1.5%.
Gold is 0.4% stronger thanks to the weaker dollar and melting equity prices.