Global Markets Follow U.S. Stocks Lower
By Dow Jones Newswires StaffGlobal stock markets were lower Tuesday, taking their cue from Monday's declines on Wall Street, while U.S. stock futures indicated the falls are set to continue at the open. There were also further declines in bitcoin, the dollar and gold, while Treasury yields fell as investors moved to safety. Tech shares led the selloff on Monday with investors increasingly wary about the sustainability of the artificial-intelligence-led boom, while prospects for a Federal Reserve rate cut in December look increasingly in the balance.U.S. futures for the S&P 500 were recently down 0.4%, futures for the Dow Jones Industrial Average declined 0.3% and Nasdaq futures fell 0.5%. The S&P 500 and Nasdaq composite on Monday fell below their 50-day moving averages for the first time since trade and tariff turmoil began to ease in May.Asian stock markets closed lower; Japan's Nikkei 225 index declined 3.2%, the biggest one-day drop since April. South Korea's Kospi Composite Index declined 3.3%, with Hanmi Semiconductor plunging 8.0%. Hong Kong's Hang Seng declined 1.7% and China's benchmark Shanghai Composite dropped 0.8%.In Europe shortly after the open, the Stoxx Europe 600 fell 1.3%. France's CAC 40 fell 1.5% and Germany's DAX was down 1.4%. AkzoNobel's shares opened over 2.0% lower in Amsterdam after it agreed on an all-stock merger with Philadelphia-headquartered Axalta Coating Systems. The U.K.'s FTSE 100 lost 1.0%, with miners the main losers as Anglo American and BHP slipped 4%.The U.S. dollar edged lower against a basket of major currencies ahead of jobs data that could influence expectations on whether the Federal Reserve will cut interest rates again in December. Fed Vice Chair Philip Jefferson on Monday said the risk of stubborn inflation and weaker employment conditions "underscores the need to proceed slowly" with rate cuts. ADP releases weekly private sector employment figures, which have taken on more importance amid the recent government shutdown. The delayed nonfarm payrolls report is due Thursday. The DXY dollar index was last down 0.1% to 99.482.Bitcoin continued its slide, falling to an almost seven-month low of $89,286, according to LSEG data.U.S. Treasury yields were lower, extending Monday's trend, with the 10-year Treasury yield down 3.1 basis points to 4.101%, while the 30-year Treasury yield fell 2 basis points to 4.716%, according to Tradeweb data. Yields on U.K. government bonds also fell as investors sought safer assets; the 10-year gilt yield fell 1 basis point to last trade at 4.526%. Eurozone government bond yields also declined.Gold prices fell for a fourth consecutive trading session. Futures in New York were last down 1.3% to $4,021.90 a troy ounce, while spot gold fell 1% to $4,045.86 an ounce.Oil prices slipped, pressured by prospects of a growing supply surplus and as traders continue to closely monitor Russian flows. Brent crude was last down 0.4% to $63.91 a barrel, while WTI fell 0.5% to $59.57 a barrel.Write to Barcelona Editors at [email protected]