LONDON, July 8 Reuters Global stocks fell on Thursday, tracking a slump in Asia in response to a widening crackdown on the tech sector in China and concern over the strength of the countrys economic recovery, while oil prices sagged on supply uncertainty.
The pace of economic recovery from the COVID19 pandemic and its impact on inflation and central bank policymaking continues to drive markets, with the U.S. Federal Reserve overnight signalling no immediate plans to tighten monetary policy.
All eyes will be on the European Central Bank later in the session, when it is set to release a strategy update that could allow for higher inflation.
The MSCIs leading index of global stocks was down 0.5, extending early session losses and tracking a 1.6 decline in the equivalent index of Asia shares outside Japan to its lowest level since midMay.
That had been fuelled by Chinas move to rein in its tech giants, with the most recent being U.S.listed Didi, which was ordered to pull its app from stores.
Despite its drop, the global index remains in a broad trading range established since late June and just off its record high. The STOXX Europe 600, a broad gauge of Europes biggest companies, meanwhile, was down 1.7.
U.S. stock futures pointed to a lower open on Wall Street, down around 1.3.
We believe valuations to be frothy not just in India but in different geographies across the world, Nikhil Kamath, CoFounder and CIO at asset manager True Beacon, said. We are hedged as much…