European stocks extended a global slide after terrorists struck a crowded tourist street in Barcelona, exacerbating unease triggered by mounting concerns about dysfunction in President Donald Trump’s administration and U.S. policy paralysis.
Travel and leisure shares led the decline of the Stoxx Europe 600 index along with banks, while industries across the board were caught in the downturn. Equities fell from Tokyo to Sydney earlier after the S&P 500 Index on Thursday tumbled 1.5 percent, its second-biggest drop for 2017. A measure of market volatility spiked higher, while traditional haven assets including the Japanese yen and gold gained. The dollar declined with Treasuries.
Concerns that Trump’s stimulus plans are in peril are weighing on stocks, with heightened terror fears adding to the malaise after at least 13 people died when a van plowed into pedestrians in Barcelona. The terror attack was a reminder that geopolitical risks remain a threat, with nerves still raw after last week’s escalation of tensions on the Korean peninsula.
“The attack in Spain and the rising doubt that Trump will be able to push through with his economic policies are among a series of unfortunate events that’s creating uncertainty for investors to pullback and capitalize on their gains,” said Jonathan Ravelas, the chief market strategist at BDO Unibank, the largest Philippine lender.
Here are the main moves in markets:
Asia
Japan’s Topix index fell 1.1 percent at the close, down 1.2 percent over the week. Australia’s S&P/500 Index ended 0.6 percent lower. The Kospi index ended 0.1 percent lower. Hong Kong’s Hang Seng Index fell 0.6 percent. The MSCI Asia Pacific Index lost 0.5 percent, paring gains for the week. The Japanese yen increased 0.4 percent to 109.08 per dollar, the strongest in almost four months.
Stocks
The Stoxx Europe 600 Index tumbled 0.7 percent as of 8:34 a.m. in London. The MSCI All-Country World Index fell 0.3 percent to the lowest in almost five weeks. Germany’s DAX Index sank 0.8 percent. The U.K.’s FTSE 100 Index dipped 0.7 percent. The MSCI Emerging Market Index decreased 0.5 percent. Futures on the S&P 500 Index declined 0.1 percent.
Currencies
The euro climbed 0.3 percent to $1.1754. The Bloomberg Dollar Spot Index declined 0.2 percent. The British pound advanced 0.2 percent to $1.2896.
Bonds
The yield on 10-year Treasuries advanced one basis point to 2.19 percent. Germany’s 10-year yield decreased one basis point to 0.41 percent. Britain’s 10-year yield declined less than one basis point to 1.082 percent.
Commodities
Gold advanced 0.4 percent to $1,293.17 an ounce, the strongest in 10 weeks. West Texas Intermediate crude gained 0.4 percent to $47.27 a barrel.