Stocks slide, dollar holds ground as US rate hike looms

Stocks slide, dollar holds ground as US rate hike looms

MSCI's benchmark for global stocks was down by 0.3 percent by 0811 GMT, as European and Asian shares fell ahead of the Federal Reserve decision and following Wall Street's steep losses on Friday in the wake of a disappointing Amazon update.







Reuters









May 02, 2022 / 03:47 PM IST





Representative image



Shares fell and the dollar held near highs in holiday-thinned trading on Monday, as concerns about economic growth lingered ahead of an expected US rate hike this week and after data showed COVID-19 lockdowns slowed China's factory activity.

MSCI's benchmark for global stocks was down by 0.3 percent by 0811 GMT, as European and Asian shares fell ahead of the Federal Reserve decision and following Wall Street's steep losses on Friday in the wake of a disappointing Amazon update.

Data that signalled a steeper pace of contraction in China's factory activity also dampened risk appetite, although the closure of London and most Asian markets for a holiday reduced volumes.

The pan-European STOXX 600 index fell 1.2 percent, on course to snap a three-day winning streak. Japan's Nikkei fell 0.1 percent and South Korea's KOSPI declined 0.3 percent.

Factory activity in China contracted at