All Tracked World Markets Fall as Germany and South Korea Decline

On Tuesday, September 1, international equity funds fell across the board. None of the tracked markets finished higher, with 0 of 8 funds advancing. The broad global benchmark dropped -0.8%, moving in the same direction as US shares, where the S&P 500 fund declined -0.7%. The most unusual session belonged to Germany, several times the size of its usual day. At the extremes of the board, South Korea -2.8% posted the steepest loss, while India -0.2% held up best.

These numbers reflect US-listed single-country funds at the New York close, where Japan -0.7% captures how Japanese equities were valued at the end of the US session.

Selling was especially pronounced in Europe, where Germany -1.8% and Eurozone -1.2% led developed markets lower. A surge in crude oil prices renewed inflation concerns across the continent. With eurozone inflation and benchmark German bond yields climbing, investors weighed the prospect of higher interest rates across Frankfurt and broader European bourses. In the UK, United Kingdom -0.4% also slipped into the red.

In Asia, South Korea -2.8% recorded the largest decline across all tracked markets. Despite solid export data for semiconductor manufacturers, smaller technology and growth companies dropped sharply as rising bond yields and geopolitical tension dampened risk appetite. Across other emerging markets, China -0.6% fell, pulling broad Emerging Markets -0.4% down, while India -0.2% saw the mildest dip on the board.

On the scheduled calendar, investors are monitoring interest rate decisions from the Bank of Canada and the Reserve Bank of New Zealand. In the United States, the Federal Reserve publishes its Beige Book report on economic conditions across its districts.