Stocks Retreat as Iron Ore Hurts Commodity Shares

• Stocks Retreat as Iron Ore Hurts Commodity Shares

Global equities fell, with shares in Australia and London retreating as a selloff in iron ore pulled down commodity producers. The dollar gained while gold fell for a third day.

Markets in Sydney, Hong Kong and Europe dropped after the Easter holidays, as investors caught up with global markets that have been weighed down by geopolitical concerns. Tokyo shares rose amid weakness in the yen after Treasury Secretary Steven Mnuchin said the dollar’s strength is “a good thing.” Iron ore futures slid, extending losses after falling into a bear market earlier this month.

Investors continued to assess risk factors in the absence of any major international incidents that damped the prospects for global growth. The U.S. has gotten encouraging signs that China will act to pressure Kim Jong Un’s regime to dismantle its nuclear weapons program, a State Department official said, but the Trump administration is holding on to military action — alone or with allies — as an option.

Readings on American housing and New York manufacturing lowered the odds for higher interest rates, while faster growth in China boosted optimism about the strength of the global economy.

Iron ore continued to plunge, taking a toll on miners shares as Fortescue Metals Group Ltd., Rio Tinto Group and BHP Billiton Ltd. slumped more than 1.5 percent in Sydney on Tuesday. Citigroup Inc. said that it’s bearish on the outlook for the raw material amid expectations for global oversupply and a slowdown in Chinese steel demand growth.

Here’s what investors are watching this week:

• Traders will be positioning for the first round of voting in French presidential elections this weekend. The four top contenders — including the far-right’s Marine Le Pen — are all within striking distance of getting enough votes to make it to the runoff.
• U.S. Vice President Mike Pence continues his tour of Asia. The U.S. trade relationship with South Korea is “falling short,” with the free-trade deal between the countries under review, Pence said Tuesday.
• The annual spring meetings of the World Bank Group and the International Monetary Fund take place in Washington.
• Companies reporting this week include Bank of America Corp., Goldman Sachs Group Inc., International Business Machines Corp., Heineken NV and Unilever.