Global Stocks Replace Winning Streak with Losing Run
Global stock indexes were facing their worst run of 2019 on Thursday as traders waited to hear from the European Central Bank about its plans to once again send cheap loans through the region. Reports released in January showed that the euro zone economy was lagging at its slowest pace of growth in the past four years, a sign that may encourage fiscal policymakers to continue flushing cheap money into the economy in an effort to stimulate growth in the region. However, according to CNBC, some economists continue to assert that this weakness is only temporary and that the euro zone economy will get back on track sometime during 2019.
European indexes were all trading lower from the start of the session on Thursday. The FTSE was down 0.47 percent as of 11:41 a.m. GMT, while the DAX was close behind with a 0.47 decline. The CAC eased 0.42 percent, and the STOXX 600 was down 0.48 percent. The declines in Europe came following a day of mixed trading in Asia, where the Nikkei 225, the Hang Seng Index and the Kospi all closed lower. Wall Street saw its third consecutive day of losses on Wednesday and is poised for another day of turbulence on Thursday. Only on Monday traders were moving markets higher with excitement about the potential U.S.-Sino trade deal, but that optimism seems to have dissolved, replaced instead by concern about the eurozone economy that is having global ramifications on the markets.
Reports out on Wednesday showing that the U.S. trade deficit hit record highs in 2018 did little to calm investor concerns about the state of the global economy. Traders are now looking towards Friday’s non-farm payroll report for a better understanding of where the U.S. economy stands and where it may be heading. In February, 300,000 new jobs were created, crushing estimates of only 189,000 new positions.