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Bloomberg
Global stocks retreated and the yen strengthened after oil tumbled into a bear market on concern a supply glut will persist. The pound extended its decline as the UK prepared to start a new parliamentary session under Theresa May’s minority government.
European shares fell for a second day as crude continued to edge lower. Haven demand spurred the yen and gold, which was poised to advance after five days of losses. For once oil’s woes had little impact in Saudi Arabia, where a palace reshuffle and good news from MSCI Inc. boosted equities. Shanghai stocks also advanced after the index provider added China’s domestic shares to its emerging-markets gauge. The weakness in crude and other commodities threatens to dent arguments from US central bankers that weak inflation rates will be transitory, adding to concerns of a Fed policy error that could unintentionally crimp the global economic recovery.
Meanwhile, MSCI said it will add 222 China A-share stocks starting in May 2018. The index provider delayed its decision on the status of Argentina’s equities and said it will consult on the possible inclusion of Saudi Arabia in the index. Still to come on the Fed speaker list: Jerome Powell, James Bullard and Loretta Mester. New Zealand’s central bank is expected to leave its benchmark interest rate at a record low when it meets on Thursday.