Charting the Markets: Global Stocks Continue to Fall
Financial traders work on the floor of the Frankfurt Stock Exchange in Frankfurt, Germany, on Tuesday, Aug. 9, 2011. European stocks fluctuated between gains and losses near a two-year low after a seven-day slump in the benchmark Stoxx Europe 600 Index.
Hannelore Foerster/BloombergGlobal stocks are heading for the third consecutive weekly drop as weak Chinese data and the prospect of a U.S. interest rate hike in December breeds caution among investors. The losing run for the MSCI All Country World Index is the longest since the end of August. The takeaway from the handful of Fed officials who spoke Thursday is rates are likely to rise this year, but the pace thereafter will be gradual. Chinese stocks on the mainland and in Hong Kong sank after data late Thursday showed the country's broadest measure of new credit tumbled to a 15-month low, demonstrating that rate cuts have yet to ignite borrowing.
A gauge tracking 22 commodities is on track for a 5th weekly decline. A culmination of the strong dollar and a slowing Chinese economy are battering the Bloomberg Commodities Index, sending it to the lowest in 16 years. This week alone crude oil has sunk almost 6 percent as U.S. stockpiles expand, while copper has dropped 4 percent on signs of falling demand from China. Gold hasn't been spared either. This week it's fallen to its lowest since 2010 as its appeal diminishes with the likelihood of a U.S. rate increase next month. The Bloomberg Commodities Index is set for a fifth yearly drop, its worst run ever.