Stocks tumbled globally in a worldwide rout (只備英文版)

  • 2018年10月12日

    Stocks tumbled globally in a worldwide rout (只備英文版)

    US stocks tumbled for the second consecutive day. On Thursday, US indices followed those in Europe and Asia lower. The S&P is down for its sixth consecutive loss as investors try to find places to invest amid concerns over interest rates and trade and signs of slowing global economic growth. The Dow Jones industrials and S&P were down 2.1 percent while Nasdaq retreated 1.25 percent. Trade concerns continue to linger.

    US markets

    US stocks tumbled for the second consecutive day. On Thursday, US indices followed those in Europe and Asia lower. The S&P is down for its sixth consecutive loss as investors try to find places to invest amid concerns over interest rates and trade and signs of slowing global economic growth. The Dow Jones industrials and S&P were down 2.1 percent while Nasdaq retreated 1.25 percent. Trade concerns continue to linger.

    Selling was across the board. Technology companies and retailers, including longtime market favorites Apple, Alphabet and Amazon, continued to slide. Energy companies fell with oil prices. Utilities and real estate companies sank as well. After months of declines, gold made its biggest jump in two years.

    A surge in bond yields came to an end as investors who sought safety bought government bonds. The market's current decline was set off by a sharp drop in bond prices and a corresponding increase in yields last week and early this week. But the decline in yields didn't help stocks Thursday.

    The drop in yields hurt banks with both JPMorgan Chase and Bank of America sinking. JPMorgan Chase and several other banks will report their third-quarter results Friday morning. Amazon dropped as did Apple. Microsoft and Alphabet, Google's parent company, held up better than the rest of the market. Facebook and Netflix tumbled.

    These data reflect observations at 4:00 PM US ET. Gold was up US$33.10 to US$1,226.50. Copper futures were down 0.5 percent to US$2.77. WTI spot crude was down US$2.38 to US$70.79. Dated Brent spot crude was down US$2.93 to US$80.16. The US dollar was down against all of its major counterparts including the yen, euro, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was down 0.45 percent. The yield on the US Treasury 30 year bond was down 8 basis points to 3.31 percent while the 10 year note was down 6 basis points to 3.14 percent.

    European markets

    European stocks tumbled Thursday after shares sold off Wednesday in the US and Thursday morning in Asia. Concerns over trade tensions between the US and China continued to weigh on investor sentiment along with rising bond yields. Traders were concerned over the possibility of aggressive rate increases by the Federal Reserve. The US President Trump offered his opinion on the Fed's policies, stating that he is "not happy" after the Fed decided to raise rates for the third time this year. The FTSE and CAC retreated 1.9 percent and the DAX declined 1.5 percent. The SMI tumbled 2.9 percent.

    Dialog Semiconductor soared after the company reached an agreement with Apple to license certain of its power management technologies, transfer certain of its assets and over 300 employees to Apple to support chip research and development. Bayer rallied after receiving a tentative ruling for a new trial on the $250 million in punitive damages in its US weed-killer case. GEA Group dropped despite reporting a 12 percent rise in preliminary operating EBITDA for the third quarter.

    In Paris, Ingenico shares surged after Natixis said it is exploring a merger of its payments business with the French financial and payments firm. Hays tumbled as its first-quarter gross profit missed analyst estimates, hurt by a relatively stronger pound against rivals. Hargreaves Lansdown sank after it warned of an industry-wide slowdown. Mondi slipped after it reported a 30 percent rise in third quarter underlying profit.

    Gemalto was down in Amsterdam. The company, which is in deal to be bought by Thales, announced that the companies now expect to close the offer in the first quarter of 2019. In Zurich, Roche, Novartis and Nestlé tumbled. Julius Baer, UBS and Crédit Suisse retreated. Zurich Insurance, Swiss Life and Swiss Re dropped. WH Smith tumbled after it unveiled plans to restructure its business. BP and Royal Dutch Shell were lower.

    Asia Pacific Markets

    Asian stocks plunged Thursday following an overnight sell-off on US markets as renewed trade tensions between Washington and Beijing dampened the outlook for economic growth and corporate profits. The Shanghai Composite plunged over 6 percent before recouping some loss to end the session down 5.2 percent — the worst single-day loss since February of 2016. The Hang Seng tumbled 3.5 percent.

    The Nikkei dropped 3.9 percent and the Topix sank 3.5 percent as a profit forecast cut by industrial equipment maker Yaskawa Electric added to investor worries over global growth. Yaskawa Electric and Mitsubishi Electric tumbled while industrial robot maker Fanuc retreated. Tokyo Electron and Advantest dropped. Banks Sumitomo Mitsui Financial and Mitsubishi UFJ Financial plummeted. Exporters Canon, Panasonic, Honda Motor and Toyota Motor also fell as the yen strengthened against the dollar on safe-haven demand.

    The S&P/ASX tumbled 2.7 percent and the All Ordinaries were 2.8 percent lower. The big four banks sank while investment bank Macquarie Group and Suncorp tumbled. Mining heavyweights BHP Billiton and Rio Tinto plunged after base metal prices saw a meltdown. In the retail sector, Wesfarmers and Woolworths retreated. Energy stocks Origin Energy, Oil Search, Woodside Petroleum, Santos and Beach Energy plummeted as oil extended losses from the previous session.

    The Kospi tumbled 4.4 percent as trade protectionism created uncertainty in the global economy. The Kospi marked the lowest level since April of last year and the largest single-day loss since September of 2011.

    The Sensex dropped 2.2 percent and the rupee hit a record low of 74.48 per dollar, as global markets plunged on concerns over slowing global growth and rising interest rates.

    Looking forward

    Singapore releases third quarter gross domestic product. Australia posts August home loans. The Monetary Authority of Singapore announces its monetary policy decision. China posts September merchandise trade balance. Germany posts final September consumer prices. The Eurozone posts August industrial production. India releases September consumer prices and August industrial production. The US posts September import and export prices and preliminary October consumer sentiment.

    Global Stock Markets
      End 2018DailyPercent Change
     Index2017Oct 10Oct 11ChangeDaily2018Yr/Yr
    North America                
    United States Dow 24719.22 25598.74 25052.83 -545.91 -2.1 1.3 9.7
      NASDAQ 6903.39 7422.05 7329.06 -92.99 -1.3 6.2 11.2
      S&P 500 2673.61 2785.68 2728.37 -57.31 -2.1 2.0 7.0
    Canada S&P/TSX Comp 16209.13 15517.40 15317.13 -200.27 -1.3 -5.5 -2.7
                     
    Europe                
    UK FTSE 100 7687.77 7145.74 7006.93 -138.81 -1.9 -8.9 -7.3
    France CAC 5312.56 5206.22 5106.37 -99.85 -1.9 -3.9 -4.8
    Germany XETRA DAX 12917.64 11712.50 11539.35 -173.15 -1.5 -10.7 -11.1
    Italy MIB 21853.34 19719.04 19356.61 -362.43 -1.8 -11.4 -13.6
    Spain Ibex 35 10043.90 9162.90 9007.90 -155.00 -1.7 -10.3 -12.3
    Sweden OMX Stockholm 30 1576.94 1595.13 1550.41 -44.72 -2.8 -1.7 -5.7
    Switzerland SMI 9381.87 8892.88 8639.19 -253.69 -2.9 -7.9 -7.1
                     
    Asia/Pacific                
    Australia All Ordinaries 6167.29 6163.79 5993.48 -170.31 -2.8 -2.8 2.2
    Japan Nikkei 225 22764.94 23506.04 22590.86 -915.18 -3.9 -0.8 7.8
      Topix 1817.56 1763.86 1701.86 -62.00 -3.5 -6.4 0.1
    Hong Kong Hang Seng 29919.15 26193.07 25266.37 -926.70 -3.5 -15.6 -11.2
    S. Korea Kospi 2467.49 2228.61 2129.67 -98.94 -4.4 -13.7 -13.9
    Singapore STI 3402.92 3131.48 3047.39 -84.09 -2.7 -10.4 -7.7
    China Shanghai Comp 3307.17 2725.84 2583.46 -142.38 -5.2 -21.9 -23.7
    Taiwan TAIEX 10642.86 * 9806.11 -660.72 -6.3 -7.9 -8.5
    India Sensex 30 34056.83 34760.89 34001.15 -759.74 -2.2 -0.2 5.7
    *Markets closed              

    Data Source — Haver Analytics

    Bond markets
    10-Yr Govt BondsClosing YieldChange Yield (bp)
    US 3.14% -6
    UK 1.67% -5
    Germany 0.52% -3
    Japan 0.14% -1
    Australia 2.73% -2

    Source — Bloomberg

    Currencies and commodities
    CurrencyOct 10Oct 11Change (%)
    Japanese yen 112.4700 112.0600 0.4%
    Australian dollar 0.7078 0.7116 0.5%
    Yuan 6.9242 6.8899 0.5%
    Euro 1.1520 1.1594 0.6%
    British pound 1.3189 1.3232 0.3%
    Swiss franc 0.9915 0.9897 0.2%
    Canadian dollar 0.7670 0.7672 0.0%

    Source — Bloomberg 

    CommoditiesOct 11Change
    Brent Spot $80.16 -3.53%
    Gold $1,226.60 $33.20
    Thompson-Reuters/ Jeffreys Commodity index 202.68 -0.74%

    Source — Bloomberg