Global Stocks Drop After Record High on Growth Concerns

Global shares eased for a third day on Friday, on course for their longest losing streak in over a month, and yields on some lower-rated euro zone bonds rose as a gloomier economic picture in Europe led investors to shed riskier positions.

Weaker-than-forecast GDP figures from euro zone countries such as Italy, France and Portugal on Thursday challenged market expectations for an economic recovery in the bloc, which have boosted shares and lower-rated bonds in the region since last summer.

Sharp sell-offs in U.S. indexes, which were set to fall for a third consecutive day, and Japanese shares and a decline in safe haven Treasury yields strengthened the feeling global investors were starting to question a 20 percent rally in global shares since June 2013, which propelled a key world index to 6-1/2 year highs earlier this week.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza