World shares, euro slide as high oil prices, fiscal worries linger
SPY•Global stocks and the euro fell Wednesday as Brent crude hovered near $100 a barrel amid renewed Middle East tensions and concerns over France’s fiscal outlook. The S&P 500 lost 0.3%, the Nasdaq fell 0.4%, and Europe’s STOXX 600 dropped 1%.
1. Stocks retreat from highs
The S&P 500 fell 0.3% and the Nasdaq declined 0.4%, pulling back a day after both reached record highs. MSCI’s main world stocks index lost 0.6%, while Europe’s STOXX 600 fell 1%, near its lowest level since June.
2. Oil and fiscal concerns
Brent crude hovered around $100 a barrel as markets weighed supply constraints from a storm approaching U.S. 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 near 140 basis points, amid concerns about the country’s finances and political uncertainty before the 2027 election.
3. Euro and rates in focus
The euro slipped 0.6% to $1.119, while the dollar index rose about 0.4%. The 10-year U.S. Treasury yield rose 1.91 basis points to 5.29%; investors were watching Treasury auctions and the Federal Reserve’s September meeting minutes. Traders put the odds of an October Fed rate hike at 19%, down from about 50% a week earlier.
