Dubai: Global investors are starting to focus back on growth, and growth has not been good.

Global stocks fell on Wednesday, extending the sell-off for another session, as investors started fretting about growth and the lack of tools with the central banks to support the economies.

A slew of weaker-than-expected data, such as both UK and Chinese manufacturing output falling continuing to fall for the past year and US productivity levels falling for two straight quarters, have added to concerns.

“Markets are concerned about growth in China, and Japan. Slower growth would have an impact on commodity pricing and company earnings,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.

The Dow Jones Industrial Average was down 0.65 per cent at 17,634.96 in early hours of New York. The S&P 500 index was down 0.62 per cent to be at 17,634.96. The Euro Stoxx 600 was 0.87 per cent lower at 332.65, while FTSE 100 index was down more than a per cent to be at 6,119.17. The German DAX was 0.73 per cent lower at 9,854.23.

Earlier, elsewhere in Asia, Shanghai Composite Index ended down 0,05 per cent to be at 2,991.27. The Bombay Stock Exchange index ended down 0.51 per cent lower at more than 25,000 mark.

“Going ahead investors would want to take some risk off the table ahead of the summer season post a very good run-up in the past couple of months,” said Khokhar,

Investors would closely watch the first quarter earnings, and leading indicators such as Purchasing Managers index in the developed as well developing countries, Khokhar added.

Dollar reverses

The US Dollar index witnessed volatile movements on Wednesday after comments from a Federal Reserve officials on the possibility of rate hike in June.

The dollar index rose 0.07 per cent to be at 93.13, after falling to the lowest level in 12 months in the previous session. The dollar index fell more than 3 per cent in the previous three sessions.

Federal Reserve has been watching the data from the US to decide on future monetary policy stance after it hiked rates in December meeting. Atlanta Fed President Dennis Lockhart on Tuesday said a June rate increase was “a real option,” while San Francisco’s John Williams said he would support such a move provided the economy stayed on track. Wednesday’s jobs report casts doubt on that assessment.