“Stocks, bonds and commodities fell around the world and the yen strengthened after Bank of Japan Governor Haruhiko Kuroda left his stimulus efforts unchanged, stoking speculation central banks will fail to keep the global recovery on track.
The MSCI All-Country World Index dropped 0.2 percent to 365.26 at 10:10 a.m. in London. The Standard & Poor’s 500 Index futures lost 0.4 percent. The S&P GSCI gauge of 24 raw materials retreated 0.4 percent. Japan’s currency strengthened at least 1 percent against all its 16 major peers. The Australian dollar sank to the lowest level in almost three years and Asian currencies declined. Greek, Portuguese and Irish bonds tumbled.
The BOJ left unaltered the one-year fixed-rate loan facility the bank has tapped seven times amid a surge in bond yields. At a press briefing in Tokyo, Kuroda said that the central bank will discuss longer funding operations if they become necessary. While global stocks have dropped 3.8 percent from this year’s peak on May 21 on speculation the Federal Reserve will taper bond purchases, they are still 7.5 percent higher in 2013.
“Investors are realizing that very low funding rates aren’t set in stone,” said Michael Leister, an interest-rate strategist at Commerzbank AG in London. “We are seeing a lot of volatility and the jury remains out on exactly what the BOJ will achieve.”
ICAP Downgrade
The Stoxx Europe 600 Index slid 1 percent, with more than six shares declining for every one that advanced. ICAP Plc slipped 4.1 percent, the most in two months, after Credit Suisse Group AG downgraded the world’s largest broker of transactions…”
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