European stocks extended a global slide after terrorists struck a crowded tourist street in Barcelona, exacerbating unease triggered by mounting concerns about dysfunction in President Donald Trump’s administration and US policy paralysis.
Travel and leisure shares led the decline of the Stoxx Europe 600 index along with banks, while industries across the board were caught in the downturn.
Equities fell from Tokyo to Sydney earlier after the S&P 500 Index on Thursday tumbled 1.5 per cent, its second-biggest drop for 2017.
A measure of market volatility spiked higher, while traditional haven assets including the Japanese yen and gold gained. The dollar declined with Treasuries.
Concerns that Mr Trump’s stimulus plans are in peril are weighing on stocks, with heightened terror fears adding to the malaise after at least 13 people died when a van plowed into pedestrians in Barcelona.
The terror attack was a reminder that geopolitical risks remain a threat, with nerves still raw after last week’s escalation of tensions on the Korean peninsula.
“The attack in Spain and the rising doubt that Trump will be able to push through with his economic policies are among a series of unfortunate events that’s creating uncertainty for investors to pullback and capitalize on their gains,” said Jonathan Ravelas, the chief market strategist at BDO Unibank, the largest Philippine lender.
Bloomberg
