Global stock indexes fell yesterday as copper slid to a six-year low on increasing worries over slower economic growth in China and a glut in supply.

Weaker-than-expected October retail sales weighed on US stocks in early trading, while US Treasuries yields fell to their lowest in a week after the retail data. Oil prices extended recent losses as supply concerns persisted.

The move in copper follows data out of China this week that pointed to weakness in that economy, including industrial output hitting a seven-month low in October.

Benchmark copper on the London Metal Exchange earlier hit $4,787.50 a tonne. The metal used in power and construction was last down 0.4 per cent at $4,805, and is down more than 3 per cent this week so far.

The supply of copper could tighten as mining firms cut back on capital expenditures, said James Butterfill, head of Research & Investment Strategy at ETF Securities.

The MSCI all-country world index lost one per cent, while the FTSEurofirst 300 fell one per cent and was down 2.9 per cent for the week and set for its biggest weekly loss in 10.

Along with the retail data, a disappointing forecast from Cisco hurt sentiment in the US stock market.

The Dow Jones industrial average fell 142.04 points, or 0.81 per cent, to 17,306.03, the S&P 500 lost 15.81 points, or 0.77 per cent, to 2,030.16 and the Nasdaq Composite dropped 52.99 points, or 1.06 per cent, to 4,952.09.

Commerce Department data showed US retail sales rose less than expected in October amid a surprise decline in automobile purchases.

The day’s data reinforced the view of modest economic growth and tame inflation, pushing US bond yields down.

Benchmark 10-year Treasuries notes were last up 12/32 in price with a yield of 2.276 per cent.

The dollar edged higher against major currencies as investors focused on expectations the Federal Reserve still may raise interest rates in December.

The dollar index, which measures the greenback against a basket of world currencies, rose 0.4 per cent, moving it closer to ending the week in the black.

The dollar has fallen this week as profit-taking on short positions sent it lower.

On Thursday various Fed officials lined up behind a likely December interest rate hike.

Stanley Fischer, the Fed’s second-in-command, noted that the central bank could move next month to raise interest rates, while New York Fed President William Dudley said the risk of waiting too long was now roughly in balance with the risk of moving too soon to normalise rates.

Brent crude was down 28 cents at $4.78 per barrel and was on track for roughly a seven per cent weekly loss, while US crude fell by $1.06 to $40.69 a barrel.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.