Global stocks dip on soft Europe data, renewed worries on US-China conflict

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Global stocks dip on soft Europe data, renewed worries on US-China conflict

The global stocks had experienced an unexpected battering on Thursday, the 7th of February, as the World MSCI stock index was down for the second consecutive days. Fueled up by a stockpile of distressful data and reports of renewed geo-political worries, the stocks around the world had pulled sharply back.

This recent leg of growing bitterness in the global stocks had mostly been resulted by a poor European economic outlook, as EU slashed their eurozone growth forecast for 2019. Following the announcement, the European stocks were heavily rammed, led by the seeping plunge of Chinese export-oriented DAX 30, down by 2.7 percent.

Meanwhile, the US stocks fell, after US president Donald Trump had rejected the possibility of a meeting with Chinese President Xi Jinping before trade truce deadline, March 1st, GMT. 05.01. While this report was being prepared, the trade-oriented Dow Jones were down by 0.87 percent to 25,169.53 and the tech-heavy Nasdaq was downsized by tottered tech stocks, largely led by quarterly profit cut of Twitter.

The S&P 500 plunged by 0.94 percent to 2,706.65 and the Nasdaq Composite was down by 1.18 percent to 7,288.35, while the energy sectors were the worst performing with a fall of 2.07 percent in the indexes. MSCI gauge of global stocks shredded off 1.28 percent of its earlier gains, posting the sharpest intra-day plunge over a month, after breaching its two-month high earlier this week.

Nevertheless, the safe-haven assets such as Japanese Yen and gold gained, although the Asian stocks severely soured, led by Japan’s Nikkei 225, which posted a fall of 0.59 percent to 20,751.28 on Thursday’s (February the 7th) market closure, earlier on the Asia Pacific trading hours.