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Stocks (MXWD) dropped for a second day and metals declined on renewed concern policy makers will fail to contain Europe’s debt crisis and amid more signs China’s slowdown is deepening. The dollar weakened.
The MSCI All-Country World Index lost 0.1 percent as of 8:19 a.m. in London, adding to yesterday’s 0.4 percent retreat. Standard & Poor’s 500 Index futures gained 0.3 percent. Zinc in London slumped 1.4 percent after a seven-day climb, while copper, aluminum and nickel also slid at least 0.3 percent. The dollar fell against 15 of its 16 major peers.
Germany’s Federal Constitutional Court is due to rule tomorrow on the country’s participation in a European rescue fund, while Greek politicians meet amid an impasse on spending cuts needed for a bailout. Investors are also waiting to see if the Federal Reserve will take steps to boost the economy at a meeting this week. Macquarie Group Ltd. cut its forecasts for China’s economic growth, while the nation’s car sales missed estimates for a second month in August.
“Concern about Europe’s debt crisis is casting a shadow at a time when investors can’t be confident about the global economy,” said Tomomi Yamashita, a senior fund manager in Tokyo at Shinkin Asset Management Co., which oversees about $6.3 billion. “This is not an easy environment to take risks.”
More than three stocks fell for each that rose in the Stoxx Europe 600 Index (SXXP), which sank 0.4 percent. Resources companies declined. The measure posted last week its biggest weekly surge since June as ECB policy makers agreed to a bond-buying plan that aims to lower regional borrowing costs.
The MSCI Asia Pacific Index slid 0.3 percent, paring losses of as much as 0.8 percent. Germany’s top constitutional court said in an e-mailed statement it won’t delay its decision on the European Stability Mechanism. The euro advanced 0.4 percent to $1.2804.
In Tokyo, Toyota Motor Corp. (7203) fell 1.7 percent, pacing declines among Japanese automakers. Guangzhou Automobile Group Co., based in southern China, slumped 3.4 percent in Hong Kong.
Passenger-vehicle sales gained 11 percent to 1.22 million units last month, the China Association of Automobile Manufacturers reported, less than the 1.24 million mean estimate in a Bloomberg survey of analysts. Macquarie lowered its 2012 China economic growth forecast to 7.7 percent from 8.1 percent, according to a report dated yesterday.
The Dollar Index, which IntercontinentalExchange Inc. uses to track the greenback against those of six U.S. trading partners, weakened 0.3 percent to 80.17. The index on Sept. 7 touched 80.151, the lowest level since May 11.
The Federal Open Market Committee will start a two-day policy meeting on Sept. 12 amid speculation it will introduce a third round of asset purchases. Fed Chairman Ben S. Bernanke said on Aug. 31 that the weak jobs market was a “grave concern.” A gauge of market expectations for additional stimulus rose to 99 percent in August, the highest ever, according to Citigroup Inc.
To contact the reporters on this story: Jason Clenfield in Tokyo at firstname.lastname@example.org; Kana Nishizawa in Hong Kong at Knishizawa5@bloomberg.net
To contact the editor responsible for this story: Darren Boey at email@example.com