PAC Pacific Current Group Ltd

Global stocks fell Wednesday, weighed by fresh declines in commodities prices and China's currency.

The Stoxx Europe 600 was down 1% in early trade following a weak finish on Wall Street and in Asia.

Losses were led by the mining and energy sectors as oil and base metals prices continued their retreat.

Crude oil lost further ground after Saudi Arabia's oil minister dismissed the possibility of a production cut amid a global supply glut. Brent crude was down 1.6% at $32.75 a barrel, adding to pain for the energy sector and its creditors.

Some investors have used the oil price as a gauge of the health of the global economy, responding to downward moves by selling risky assets, such as stocks, across the board.

Also keeping investors cautious, Chinese authorities guided the yuan weaker for a second day in a row. Depreciation of the currency sent shock waves through financial markets last August and at the start of this year.

Investors fear a substantially weaker Chinese currency could spur capital outflows from the country and adversely impact China's trading partners.

"China remains one of our biggest concerns in global financial markets," said Barclays economist Shengzu Wang.

The Shanghai Composite Index closed up 0.9%, but shares elsewhere in Asia fell, catching up with losses in the U.S. and Europe.

Japan's Nikkei Stock Average was down 0.9% as a stronger yen weighed on shares of exporters. Bank of Japan Governor Haruhiko Kuroda said Wednesday that the central bank wouldn't hesitate to act if market volatility threatens its efforts to defeat deflation, helping to push long-term Japanese government bond yields to record lows. Yields fall as prices rise.

Australia's S&P ASX 200 fell 2.1%, weighed down by energy and financial shares, while Hong Kong's Hang Seng Index lost 1.2%.

Stocks around the world had climbed last week, recouping some of the steep losses in global financial markets earlier this year. A slump in bank shares and declining commodity prices halted the rally Tuesday as Wall Street ended lower.

Mixed U.S. data did little to reassure investors about the strength of the U.S. economy after consumer confidence figures disappointed.

The yield on the 10-year Treasury note fell around 0.02 of a percentage point Wednesday to 1.717%, and is down over half a percentage point this year.

"The 10-year Treasury is literally telling you the bond market sees clouds on the horizon," said Bob Andres, chief investment officer of Andres Capital Management.

Mr. Andres expects stocks to fall further amid a global slowdown, low commodities prices, and after years of quantitative easing in the U.S., which he said artificially boosted stock prices.

In currencies, the dollar was up 0.1% against the yen at ¥ 112.0680, while the euro was down 0.2% against the dollar at $1.0998.

Recent weak manufacturing and business expectations figures in Europe have further fueled expectations for the European Central Bank to expand its stimulus measures at its March meeting.

In metals, gold was up 0.3% at $1,226 an ounce.

Copper was down 1.5% at $4,585 a ton, adding to pain in Europe's basic resources sector. With Wednesday's losses, the mining sector fell back into negative territory for the year.

Summer Said and Hiroyuki Kachi contributed to this article.

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

February 24, 2016 04:35 ET (09:35 GMT)

Pacific Current (ASX:PAC)
Historical Stock Chart
From May 2024 to Jun 2024

Pacific Current (ASX:PAC)
Historical Stock Chart
From Jun 2023 to Jun 2024