Global Markets Drop For Second Day After China Stimulus Disappoints

20 June 2023

Global markets and US equity futures extended their decline for a second day due to a risk-off sentiment. Investor disappointment followed the below-par reduction in benchmark lending rates by Chinese banks. The second-quarter rally faced resistance from economic challenges, overbought conditions, and stretched positioning. S&P futures dropped 0.4%, Nasdaq futures dipped 0.3%, and MegaCap tech stocks led the weakness. Commodity prices were mostly lower, but there were gains in oil, gold, and Bitcoin.

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