Global stocks slip for third day, dollar recovers ground

Wed Aug 3, 2016 4:45pm EDT
 
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By Saqib Iqbal Ahmed

NEW YORK (Reuters) - Global equity prices slipped for a third straight day on Wednesday on growing nervousness about central bank policy, even as Wall Street eked out a modest gain.

The dollar rallied as investors squared positions ahead of Friday's U.S. nonfarm payrolls report, data that should help determine the timing of the next Federal Reserve interest rate hike.

MSCI's world stocks index .MIWD00000PUS, which tracks shares in 45 nations, was down 0.27 percent after a sharp drop in Japanese stocks.

"The central banking issue is more of a factor of everybody trying to stimulate their economies, and how much more can you do?," said Scott Fullman, chief strategist at Revere Securities LLC.

The recent string of weaker U.S. data has further pushed back expectations for when the Fed might raise benchmark U.S. rates.

Chicago Federal Reserve Bank President Charles Evans on Wednesday offered a lukewarm endorsement of a rate increase later this year.

UK services sector data on Wednesday showed Britain's economy is shrinking at the fastest pace since 2009, upping the pressure on the Bank of England to cut rates at a meeting on Thursday.

A recent drop in oil prices and concerns about the strength of European banks are among some of the other factors that have halted the rally in equity prices, Fullman said.   Continued...

 
A worker shelters from the rain as he passes the London Stock Exchange in the City of London at lunchtime October 1, 2008.  REUTERS/Toby Melville/File Photo