The
strongest dollar in nearly 12 years versus the euro and the specter of
higher U.S. interest rates fueled a selloff in global equities that sent
the Standard & Poor’s 500 Index to its biggest slide since Jan. 5.
Oil and copper declined.
The
S&P 500 fell 1.7 percent at 4 p.m. in New York, slipping below its
average price for the past 50 days and erasing its gains in 2015. The
Dow Jones Industrial Average lost 328 points in its biggest slide since
Jan. 5. The Stoxx Europe 600 Index lost 0.9 percent. The euro weakened
1.4 percent to $1.0704 and a gauge of 20 emerging-market currencies fell
for a ninth day. Yields on 10-year German securities dropped to a
record, as the yield difference between 10-year Treasuries and bunds hit
the widest since 1989. U.S. crude slid below $49 a barrel while copper
dropped the most since January.
Federal
Reserve Bank of Dallas President Richard Fisher said the central bank
should begin to raise rates as the labor market improves. While policy
makers from Sydney to Wellington, Tokyo, Zurich and Frankfurt are
cutting rates and buying government bonds to stimulate growth, the Fed
stands out in accepting a higher exchange rate as a sign of economic
strength. The dollar has rallied this year versus 14 of 16 major
counterparts.
Source : Bloomberg
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