U.S. stocks fell, while bonds rallied around the world as a deepening commodities rout and an unexpected drop in American retail sales fueled concern growth is slowing. Copper sank the most since 2011 and the yen rose.
The Standard & Poor™s 500 Index slid 1.2 percent at 12:45 p.m. in New York, for a four-day slide of 3 percent. Freeport-McMoRan Inc. tumbled 12 percent extending its rout this week to 21 percent, while energy shares headed for the lowest close in two years. The Stoxx Europe 600 Index dropped as Rio Tinto Group and BHP Billiton Ltd., the world™s largest mining companies, fell at least 4 percent. Copper tumbled 5.2 percent and U.S. crude erased gains after government inventory data. The yen rose versus its 16 major peers, while 30-year Treasury yields slid to a record.
Retail sales fell last month in a broad-based retreat that will probably prompt economists to cut growth forecasts. Commodity prices are tumbling as a supply glut collides with waning demand, reducing earnings prospects for producers and increasing the appeal of bonds as inflation slows. The World Bank cut its global growth outlook, citing weak expansions in Europe and China. U.S. financial shares sank after JPMorgan Chase & Co.™s earnings retreated.