(Aug 3 Bloomberg) *Rebound in European bank shares fails to brighten sentiment *Industrial metals decline, with zinc the biggest loser
A gauge of global stocks fell for a third day as a rebound in European banks failed to trigger a broader recovery. Emerging markets sank and the ringgit weakened with oil holding below $40 a barrel.
S&P 500 futures were lower even with European equities little changed as HSBC Holdings Plc, Europe's biggest bank, jumped after announcing a share buyback. Crude halted a two-day drop before an update on U.S. oil inventories, while gold was near its highest price since July 11. Industrial metals declined and the Malaysian ringgit and Turkish lira were some of the biggest losers among developing nations' currencies.
July's gains in global equities have faltered as crude descended into a bear market. And while investors are looking to central banks and governments around the world to shore up growth, the last two stimulus efforts haven't managed to ignite optimism. Japan's announcement Tuesday that it would boost spending by 4.6 trillion yen ($45 billion) in the current fiscal year and a cut in interest rates by Australia's central bank both left investors underwhelmed.
"There's still too much uncertainty in Europe for there to be sustained gains," said Christopher Riniker, the Zurich based head of strategy research at Julius Baer Group Ltd. "You have the banking issues, Brexit is weighing on sentiment, there's questions about economic growth, so we will continue to see volatility."
Click on the link below to see the full story from Bloomberg: (by Emma O'Brien and Kelly Gilblom)