The Latest: Gold comes off recent high as stocks steady


LONDON (AP) — The latest on the turmoil afflicting global financial markets (all times local):

10:25 a.m.

Not all financial assets are suffering during this tumultuous start to 2016.

Though stock markets around the world may be experiencing one of their most prolonged downturns since the global financial crisis of 2008, other financial assets are enjoying strong gains.

Gold has been on the rise as the precious metal benefited from its perception among investors as a safe haven. On Monday, it rose to just shy of $1,200 an ounce, its highest level since last June.

The steadier tone in European markets on Tuesday has seen gold retreat slightly. It’s down about $8 at $1,190.

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10:00 a.m.

Banks have been at the forefront of the selling pressure in Europe in recent days as investors worry about their ability to deal with a worse-than-anticipated global economic outlook.

On Tuesday, many of those stocks recouped some of the losses sustained the previous day. Germany’s Deutsche Bank was up 1 percent while France’s BNP Paribas was flat. However, Italy’s UniCredit was down again as fears over the scale of bad loans in the country’s banking sector remain.

Neil Mackinnon, global macro strategist at VTB Capital, said the trading week has started with a firm “risk-off” mood, with European banks in the spotlight given high levels of non-performing loans, especially among the Italian banks.

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9:35 a.m.

Stock markets in Europe have managed to eke out some gains despite an earlier slide in Japan’s main index, the latest in a series of dramatic moves in global financial markets.

Having started in the red, European shares pushed higher and the Stoxx 50 index of leading European shares was up 0.7 percent at 2,584. Most of Europe’s main indexes were trading higher.

Earlier, Japan’s main Nikkei 225 stock average ended 5.4 percent lower as renewed jitters about the global economy set off a wave of selling in banking stocks.

Investors around the world are worrying about a number of issues, including the fall in the price of oil to multi-year lows, the scale of the slowdown in China and whether many parts of the global economy will fall back into recession and suffer a debilitating period of deflation, or falling prices.

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