China’s stocks fell as concern slumping commodity prices and a weakening economy will reduce profits overshadowed the biggest cash injection into financial markets in three years.
European stock index futures fell and oil led a retreat in raw materials, while South Korea’s won weakened.
The Shanghai Composite Index fell 2.9 percent and contracts on the Euro Stoxx 50 Index retreated 0.4 percent while Japanese shares declined as the nation’s central bank started a two-day meeting. Facebook Inc.’s after-market bounce spurred gains in futures on the Nasdaq 100 Index.
U.S. crude snapped a two-day advance as American stockpiles data reinforced concern a global glut is worsening. Malaysia’s ringgit rose to a seven-week high after Prime Minister Najib Razak maintained his fiscal-deficit target.
With 2016 proving to be one of the most volatile starts to a year on record for financial markets, the Fed’s first statement since its December interest-rate hike noted officials were “closely monitoring” developments from China to Europe, for any adverse impact on the U.S. economy.
China’s policy makers injected more cash into its financial system to keep borrowing costs from rising as they contend with the slowest economic growth in a quarter century and record capital outflows that drove the yuan to a five-year low this month.
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