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.