Global Markets Retreat as Emerging Equities and South Korea Slide

On Thursday, September 10, global equity markets moved lower across every tracked region. Exactly 0 of the 8 tracked international markets ended the day in positive territory. The fund representing the world as a whole closed at -0.8%, declining in tandem with domestic portfolios where the S&P 500 fund recorded -0.6%. On the relative side, Japan -0.6% and United Kingdom -0.6% held up best, while South Korea -4.2% posted the steepest decline. Because these figures track US-listed funds, the reading for Japan -0.6% reflects how Japan appeared to an American investor at the New York close rather than during local market hours.

The day's most unusual session belonged to Emerging Markets, roughly twice the size of its usual day. Equities across international exchanges came under pressure after crude oil prices jumped above 100 dollars per barrel following disruptions in the Middle East. The jump in energy prices lifted Treasury yields and heightened global inflation concerns.

The steepest decline came in South Korea -4.2%, where foreign net selling accelerated amid inflation worries ahead of upcoming US price data. Broad developing markets followed lower, with Emerging Markets -2.2%, while Asian peers saw China -1.0% and India -1.2%. In Europe, selling was also broad, as the board closed with Eurozone -0.9% and Germany -1.0% both losing ground.

Market participants now turn to several scheduled economic updates. In the United States, the upcoming consumer price index release is scheduled to provide fresh details on headline inflation and real earnings. In the United Kingdom, upcoming official monthly gross domestic product estimates will show how services, manufacturing, and construction fared in July. Meanwhile, an upcoming monthly oil market report will offer updated global demand and supply projections following recent commodity price volatility.