World shares and euro slide as energy shock, fiscal worries bite
SPY•World shares fell as oil rose above $100 a barrel amid renewed Middle East tensions and concerns about France’s fiscal position. The S&P 500 slid 0.6%, the euro fell 0.7% to $1.118, and Brent crude rose 1.65% to $102.24 a barrel.
1. Stocks retreat, oil rises
Global stocks and the euro pulled back as oil prices rose above $100 amid renewed Middle East tensions and concerns that France’s fiscal woes could affect broader debt markets. The S&P 500 fell 0.6% after setting a record the previous day, while the Nasdaq dropped 0.85%; Europe’s STOXX 600 fell 1.1%, near its lowest level since June.
2. France weighs on euro
Brent crude rose 1.65% to $102.24 a barrel as markets weighed supply constraints from a storm approaching US oil-producing regions and attacks by Yemen’s Iran-backed Houthis on Saudi Arabia. France’s yield spread over German Bunds widened by about 11 basis points to 140 basis points, while the euro slipped 0.7% to $1.118.
3. Investors watch US debt
The dollar index rose about 0.5%. Investors were watching a 10-year US Treasury auction and the Federal Reserve’s September meeting minutes; traders lowered the odds of an October Fed rate hike to 19%, from about 50% a week earlier.
