June 2, 2016
Sliding oil prices hurt energy-related stocks and a host of disheartening economic data stifled demand for riskier assets. It was an inauspicious start to June across global markets.
European markets were down nearly 2%, Asian and Australian stocks pulled markets lower. Manufacturing data showed China’s economy is still struggling and euro zone factory growth hit a three-month low. Oil prices fell more than 1%, with major Middle East exporters’ production expected to remain high, while U.S. consumer confidence dropped.
The U.S. dollar floundered against the yen and the euro, following soft economic data that prompted investors to reconsider interest rate implications. The currency movement pulled back expectations that the Federal Reserve will raise interest rates this month, perhaps even delaying a hike until later in the summer.