Global markets experienced their longest losing streak of 2019 as investors awaited potential policy changes from the European Central Bank (ECB). European shares declined further from five-month highs, with the MSCI World Index posting its fourth consecutive day of losses, marking its worst run since December's market rout.
Italian government bonds reached a seven-month high amid speculation the ECB might revive its targeted long-term refinancing operations (TLTROs) to inject liquidity into the eurozone. However, ECB officials remained cautious, with investment strategist Eoin Murray questioning the effectiveness of repeated stimulus measures in driving economic growth.
Asian markets showed mixed performance, with Japan's Nikkei falling 0.7% and Hong Kong's Hang Seng declining 0.7% as Chinese blue-chip indices reversed earlier gains. U.S. stock indices also fell for a third straight day, with the S&P 500 recording its largest single-day drop in a month.
Concerns over U.S.-China trade negotiations and a record-high goods trade deficit in 2018 added to market volatility. Meanwhile, the euro weakened to $1.1304 amid anticipation of ECB policy updates, while the Australian and Canadian dollars hit two-month lows amid expectations of restrained monetary policy.
Oil prices edged higher amid OPEC supply cuts and U.S. sanctions on Venezuelan and Iranian exports, though rising U.S. crude production limited gains. U.S. crude futures climbed 0.1% to $56.29 per barrel, while Brent crude rose 0.3% to $66.20.
