This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.bbc.co.uk/news/business-45820640

The article has changed 12 times. There is an RSS feed of changes available.

Version 8 Version 9
US stocks sink again as European markets close US share markets sink as sell-off continues
(about 4 hours later)
Shares are suffering a fresh bout of market jitters as the European markets close for the day. A sell-off in US stock markets has continued with a second day of steep declines.
In London, the FTSE 100 share index tumbled 1.9% to end at 7,006 points. France's CAC 40 index slid 1.9% to 5,106, while Germany's DAX fell 1.48% to 11,539. Despite early gains, losses on the indexes accelerated later in the day, extending earlier drops in Europe and Asia.
In a day of wild swings, the Dow Jones index was down 100 points at 25,498 - about 0.4% - although it had been down 350 points in mid morning. The Dow Jones and S&P 500 both closed down more than 2%, while the Nasdaq slid about 1.25%
The wider S&P 500 slid 0.65%. The falls came amid concerns about rising interest rates and slowing global growth.
The Nasdaq - which took the worst of Wednesday's declines - was mostly unchanged. Energy firms led the slump, as oil prices posted steep declines.
In Asian trading earlier, the Hang Seng index in Hong Kong had plunged to a 19-month low. Companies in the financial and property sectors - industries sensitive to higher rates and exposed to risk from Hurricane Michael - also took a beating.
Japan's benchmark Nikkei 225 dropped 3.9%, its steepest daily drop since March. In China, the Shanghai Composite fell 5.2% to its lowest level since 2014. Earlier in London, the FTSE 100 share index tumbled 1.9% to close at 7,006 points.
Markets in Asia had followed US stocks, which made steep falls on Wednesday. France's CAC 40 slid 1.9% to 5,106 points, while Germany's DAX fell 1.5% to 11,539 points.
What's driving the declines? In Asian trading, the Hang Seng index in Hong Kong had plunged to a 19-month low, following Wednesday's declines in the US.
US markets have performed better than expected this year, bouncing back after turmoil earlier in the year to set new records over the summer. Japan's Nikkei 225 dropped 3.9% - its steepest daily drop since March. In China, the Shanghai Composite collapsed 5.2% to its lowest level since 2014.
But the Federal Reserve is raising interest rates, with the latest hike coming last month, and more increases are likely to come. What's driving the fall?
The Fed last month abandoned its description of its policy as "accommodative", reflecting a view that the economy is strong enough not to need the kind of stimulus it received in the after-math of the financial crisis. The declines this week follow months of better-than-expected performance in US markets, which bounced back after turmoil earlier in the year to set new records over the summer.
The prospect of dwindling US stimulus has been compounded by a trade war between the world's two largest economy - which the IMF has warned could harm growth. But the Federal Reserve is raising interest rates, with the latest hike coming last month, and more increases likely to come.
The concerns about higher rates have been compounded by a trade war between China and the US - which the IMF has warned could harm growth.
With hundreds of companies due to report earnings forecasts in coming weeks, analysts attributed the sell-off in part to investors worried that those two factors will increase business costs and hurt corporate profits.
AnalysisAnalysis
Kim Gittleson, New York business correspondent Kim Gittleson, New York business correspondent, BBC News
For traders who had got used to the seemingly inevitable march of US stock markets ever higher, Wednesday was a bit of a shock.For traders who had got used to the seemingly inevitable march of US stock markets ever higher, Wednesday was a bit of a shock.
Here's just one reason why: the S&P 500 didn't record a single move up or down of more than 1% during the third quarter of 2018. That hasn't happened since 1963, according to LPL Financial.Here's just one reason why: the S&P 500 didn't record a single move up or down of more than 1% during the third quarter of 2018. That hasn't happened since 1963, according to LPL Financial.
So what led investors to head for the exit?So what led investors to head for the exit?
As ever, it's almost impossible to pinpoint one reason for the sell-off.As ever, it's almost impossible to pinpoint one reason for the sell-off.
The consensus seems to be a combination of rising interest rates, tariffs and inflation led investors to worry that fourth-quarter earnings season, which begins on Friday, won't be as record-breaking as prior quarters.The consensus seems to be a combination of rising interest rates, tariffs and inflation led investors to worry that fourth-quarter earnings season, which begins on Friday, won't be as record-breaking as prior quarters.
But when it comes to one of those concerns - inflation - investors got to breathe a sigh of relief on Thursday.But when it comes to one of those concerns - inflation - investors got to breathe a sigh of relief on Thursday.
Just before US markets opened, the September reading of the consumer price index showed that prices rose by just 0.1% during the month, below expectations.Just before US markets opened, the September reading of the consumer price index showed that prices rose by just 0.1% during the month, below expectations.
After the release, the mood on the floor of the New York Stock Exchange was almost instantly lightened, as the lower-than-expected reading tempered concerns that the US Federal Reserve will be forced to increase interest rates at a faster pace than expected. After the release, the mood on the floor of the New York Stock Exchange almost instantly lightened, as the lower-than-expected reading tempered concerns that the US Federal Reserve will be forced to increase interest rates at a faster pace than expected.
The question is if calm will once more prevail on Wall Street - or if Wednesday's dip was a harbinger of a turbulent earnings season to come.The question is if calm will once more prevail on Wall Street - or if Wednesday's dip was a harbinger of a turbulent earnings season to come.
Trump attacks 'crazy' Fed The Dow and S&P 500 have now fallen more than 5% below earlier peaks, while the Nasdaq is off about 10%.
The US stock market declines have prompted US President Donald Trump to renew his attacks on the Federal Reserve for its decision to raise interest rates. The White House brushed off the declines, arguing that the steep rise in the markets earlier this summer made it ripe for correction.
He said higher rates - which make borrowing more expensive - were "far too stringent". But US President Donald Trump - who often boasts about US stock market performance-also renewed his attacks on the Federal Reserve for its decision to raise interest rates.
"I think what the Fed is doing is wrong," he said. He said higher rates - which make borrowing more expensive - were "far too stringent", adding: "I think what the Fed is doing is wrong."
On Wednesday, he said the Fed had "gone crazy", prompting a response from International Monetary Fund head Christine Lagarde, who said she "would not associate" Fed chair Jerome Powell "with craziness".
Interest rates in the US remain relatively low by historic standards.Interest rates in the US remain relatively low by historic standards.
Analyst Michael Hewson of CMC Markets said it was "too simplistic to blame the Federal Reserve" for market turmoil. Michael Hewson of CMC Markets said it was "too simplistic to blame the Federal Reserve" for market turmoil.
"There are a number of factors," he told the BBC. "Obviously, concerns about slowing growth - the IMF downgraded its global growth forecast for the global economy, citing emerging market concerns.""There are a number of factors," he told the BBC. "Obviously, concerns about slowing growth - the IMF downgraded its global growth forecast for the global economy, citing emerging market concerns."