This article is from the source 'guardian' 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.theguardian.com/business/2018/oct/26/global-stock-markets-set-for-worst-losing-streak-for-five-years

The article has changed 7 times. There is an RSS feed of changes available.

Version 0 Version 1
Global stock markets set for worst losing streak for five years Global stock markets set for worst losing streak for five years
(about 2 hours later)
Global stock markets were set for their worst losing streak in five years on Friday after quarterly results from Amazon and the Google owner Alphabet failed to reassure rattled investors. Shares on Wall Street fell in early trading on Friday, as global markets headed for their longest losing streak in five years.
The MSCI all country world index, which tracks shares across stock markets in 47 developed and emerging countries, fell by 0.5%. New York’s Nasdaq index lost 2.5% after the opening bell in the wake of a poor set of tech results on Thursday, continuing a bumpy week for US stocks. The S&P 500 fell by 1.5%, while the Dow Jones Industrial Average lost 1%.
The index has dropped by 9% since the start of the month, the second largest sell-off of the year following turmoil in February. A fifth consecutive week of losses would represent its worst period since May 2013. British companies on the FTSE 100 were down 1.4% by the mid-afternoon, with the index hitting its lowest level in seven months on Friday. The share price of the steel producer Evraz fell by more than 8%. The grocery delivery firm Ocado and the engineering giant Rolls-Royce both lost more than 4% in afternoon trading.
British companies on the FTSE 100 fell by about 1%, with the index hitting its lowest level in seven months. The share prices of the steel producer Evraz and the grocery delivery firm Ocado both lost more than 7% by lunchtime in London on Friday, while the engineering giant Rolls-Royce lost more than 5%. The slide was steeper across Europe’s other large markets. Germany’s Dax index fell by 1.3% while France’s Cac 40 lost about 2% by the afternoon.
The slide was steeper across Europe’s other large markets. Germany’s Dax index fell by 1.9% while France’s Cac 40 lost 2.4% by early afternoon.
The ructions on European indices followed nerves in the US, where shareholders were starting to question the valuations of large firms.The ructions on European indices followed nerves in the US, where shareholders were starting to question the valuations of large firms.
Futures for US stock markets indicated potential trouble ahead on Friday, after a bumpy week on Wall Street. S&P 500 e-mini futures fell by more than 1% ahead of the US opening bell. The MSCI all country world index, which tracks shares across stock markets in 47 developed and emerging countries, fell by as much as 0.5% in morning trading, before recovering.
While output growth in the US, the world’s largest economy, remains strong, investors are growing increasingly concerned that companies will be unable to sustain profits at current levels as the US Federal Reserve raises interest rates. The threat of impacts from a trade war between the US and China is also hanging over investors. The index has dropped by 9% since the start of the month, the second largest sell-off of the year following turmoil in February. A fifth consecutive week of losses would represent its worst period since May 2013.
“Expectations for US company earnings are quite high, so whenever they are not being met, the reactions are quite severe,” said Miraji Othman, a credit strategist at BayernLB. The latest US GDP figures, published on Friday, showed annualised growth of 3.5% in the third quarter of the year, continuing a run of strong performances by the world’s largest economy. However, investors are growing increasingly concerned that America’s giant companies will be unable to sustain profits at current levels as the US Federal Reserve raises interest rates. The threat of disruption from a trade war between the US and China is also hanging over investors.
The US online retailer Amazon on Thursday delivered record profits of almost $3bn for the last three months, but revenue growth was slower than expected. “Expectations for US company earnings are quite high, so whenever they are not being met, the reactions are quite severe,” said Miraji Othman, a credit strategist at German bank BayernLB.
Alphabet also missed analysts’ revenue expectations. The firm was also under pressure after a New York Times report alleging that it paid executives after they were accused of sexual harassment. Amazon on Thursday delivered record profits of almost $3bn for the last three months, but revenue growth was slower than expected.
Alphabet also missed analysts’ revenue expectations. The parent company of Google was also under pressure after a New York Times report alleging that it paid executives after they were accused of sexual harassment.
On currency markets sterling fell against the US dollar to a low of $1.2784, its lowest level in more than 10 weeks. The euro also hit a 10-week low against the dollar, which can act as a safe haven for investors.On currency markets sterling fell against the US dollar to a low of $1.2784, its lowest level in more than 10 weeks. The euro also hit a 10-week low against the dollar, which can act as a safe haven for investors.
Global economyGlobal economy
Stock marketsStock markets
SharesShares
Dow JonesDow Jones
US economyUS economy
EconomicsEconomics
newsnews
Share on FacebookShare on Facebook
Share on TwitterShare on Twitter
Share via EmailShare via Email
Share on LinkedInShare on LinkedIn
Share on PinterestShare on Pinterest
Share on Google+Share on Google+
Share on WhatsAppShare on WhatsApp
Share on MessengerShare on Messenger
Reuse this contentReuse this content