China’s weakening economic expansion and slowing earnings growth in the U.S. sent copper into a bear market and gold to the biggest weekly drop in a year and a half, while global stocks fell the most in 10 months.
The dollar fell against the euro, reversing an earlier gain, after a report showed manufacturing in the Philadelphia region expanded less than forecast, boosting the chances that U.S. monetary stimulus will be maintained.
The pound has become the main transmission tool for the Bank of England to loosen monetary policy because the link between U.K. bond markets and households is weaker than in the U.S., according to Morgan Stanley.
The yen strengthened for a second day against the dollar as a lack of unity among Japanese lawmakers for the government’s picks to run the central bank damped speculation for accelerated monetary easing.
The pound declined to a 2 1/2-year low versus the dollar and dropped against the euro this week amid investor concern that U.K. policy makers are struggling to avoid an unprecedented triple-dip recession.