By Nathan Allen
Global stocks declined on Tuesday as concerns about global growth and a selloff in U.S. tech stocks added to the prevailing cautious mood among investors.
In Europe, the Stoxx Europe 600 opened 0.2% lower, erasing some of Monday's gains. Germany's DAX index fell 0.6% and the U.K.'s FTSE 100 dropped 0.4%.
London-listed Hargreaves Lansdown PLC was the biggest loser on the FTSE 100, shedding more than 5% in early trade. The investment manager had directed a number of clients to the Woodford Equity Income fund, which on Monday said it had suspended redemptions.
The declines followed a downbeat session in Asia, with Hong Kong's Hang Seng Index down 0.7%, China's Shanghai Stock Exchange down 1% and Korea's Kospi largely flat.
Australia's S&P ASX 200 was one of the few local bourses to buck the trend, trading 0.2% higher after the Reserve Bank of Australia cut interest rates in an effort to offset the negative effects of trade tensions. The Australian dollar gained 0.2% against the U.S. dollar.
Government bond yields rose slightly, though they remained under pressure as money managers continued to pursue haven assets and switch out of equities. The yield on 10-year U.S. Treasurys was up to 2.096% on Tuesday, from 2.085% on Monday. The yield on 10-year German bunds was minus 0.207%.
U.S. futures pointed to opening gains of around 0.1% for the S&P 500, the Dow Jones Industrial Average and the Nasdaq-100, clawing back some of Monday's losses.
The tech-heavy Nasdaq dropped 1.6% on Monday, down more than 10% from its May record, as U.S. regulators geared up to scrutinize some of the country's largest technology companies, signaling a potential shift away from the previously laissez-faire attitude applied to the sector.
Later on, markets will be focusing on a speech by Federal Reserve Chairman Jerome Powell, as expectations of a rate cut continue to increase. On Monday the Federal Reserve Bank of St. Louis President James Bullard said that a lowering of the central bank's short-term rate target "may be warranted soon" if the economic slowdown in the U.S. proves sharper than expected.
Elsewhere, Mexico warned that it was considering retaliating against President Trump's threat to impose tariffs on exports to the U.S., though it would rather negotiate a solution.
ING's chief economist and head of research for Asia-Pacific, Robert Carnell, said Mexico's response is significant as it signals a shift in the largely one-sided U.S. trade disputes. Washington has placed tariffs on several countries and faced minimal retaliation, which has helped support the dollar, but this dynamic is unlikely to continue indefinitely, he said.
"There is certainly scope for the USD to depreciate as countries decide that they aren't simply going to sit back and take it anymore," Mr. Carnell said.
The WSJ Dollar Index, which tracks the dollar against a basket of 16 currencies, was down 0.2%.
In commodities, global oil benchmark Brent crude fell 0.3% to $61.12 a barrel, while gold gained 0.4%.
Write to Nathan Allen at email@example.com