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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
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| Version 1 | Version 2 |
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| Global stock markets set for worst losing streak for five years | Global stock markets set for worst losing streak for five years |
| (about 1 hour later) | |
| Shares on Wall Street fell in early trading on Friday, as global markets headed for their longest losing streak in five years. | Shares on Wall Street fell in early trading on Friday, as global markets headed for their longest losing streak in five years. |
| 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%. | 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%. |
| British companies on the FTSE 100 were down 1.4% by 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. | |
| 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 1.3% while France’s Cac 40 lost about 2% by the 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. |
| 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. | 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. |
| 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. | 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. |
| 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 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. |
| “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. | “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. |
| Amazon on Thursday delivered record profits of almost $3bn for the last three months, but revenue growth was slower than expected. | 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. | 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. |
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