Retreat of world stocks chilled by the decline of Wall Street

Shares in Europe and Asia fell on Thursday after a Wall Street recession pulled the S & P 500 and Dow Jones Industrial Average back from their latest highs.

Stock prices fell in London, Frankfurt, Tokyo and Shanghai, but rose in Paris.

On Thursday, corporate report cards continue to flow steadily, whether Caterpillar or Apple, the tech giant. Amazon and Starbucks will also report results on Thursday.

Aside from revenue, the US Department of Commerce will release a report on gross domestic product for the third quarter on Thursday to give investors the latest information on US economic growth.

Investors are also looking forward to seeing how the Federal Reserve Board of Governors plans to cut bond purchases and move its position on interest rates next week.

Germany’s DAX fell 0.1% to 15,690.45, while in London the FTSE 100 fell 0.4% to 7,221.86. Paris’ CAC 40 was up 0.3% to 6,772.04.

The trader works on the floor of the New York Stock Exchange (NYSE) in New York City on October 15, 2021. (SpencerPlatt / Getty Images)

The future of the 30 Dow Jones Industrial Averages rose 0.1%, but the future of the S & P 500 also rose 0.1%.

On Wednesday, the S & P 500 fell 0.5% and the Dow Jones Industrial Average fell 0.7%. The Nasdaq rose below 0.1% and the SME Russell 2000 Index fell 1.9%, suffering the most losses.

In Asia, the surge in coronavirus in China raises doubts about the economic outlook, given the signs that inflationary trends could intensify central banks’ monetary tightening.

In Seoul, KOSPI fell 0.5% to 3,009.55, even after Samsung Electronics reported its highest quarterly profit in three years on Thursday, thanks to strong demand for computer memory chips.

Samsung’s dual strength in parts and finished products has allowed millions of people to work at home, allowing it to thrive during a pandemic. However, the company said it is addressing a “longer than expected” component shortage that could impact semiconductor demand this quarter.

The Nikkei Stock Average in Tokyo fell 1% to 28,820.09.

The Bank of Japan did not change its monetary policy at the meeting that closed on Thursday, putting downward pressure on the world’s third-largest economy due to “supply-side constraints” such as pandemics, shipping delays, bottlenecks and shortages of computer chips. I warned. Manufacturing material.

People walking in front of the Bank of Japan
A man wearing a protective mask passed by the headquarters of the Bank of Japan during the outbreak of coronavirus disease (COVID-19) in Tokyo on May 22, 2020. (Kim Jeong Hoon / Reuters)

The growth forecast for the fiscal year ending March has been downgraded from the 3.8% estimate announced in July to 3.4%. Inflation is projected to be 0% this year, a significant decrease from the previous forecast of 0.9%.

Sony’s second-quarter profit was 54%, mainly from temporary tax-related profits that expanded last year’s numbers, as Japanese electronics and entertainment companies managed to maintain results despite the coronavirus pandemic. Reported a decrease. The company’s share price fell 1.6% on Thursday.

In Hong Kong, the Hang Seng Index fell 0.3% to 25,555.73 and the Shanghai Composite Index fell 1.2% to 3,518.42. Sydney’s S & P / ASX 200 fell 0.3% to 7,430.40.

Yields on 10-year Treasuries were stable at 1.53% to 1.55% late Wednesday.

On Thursday, US benchmark crude fell 68 cents to $ 81.98 a barrel. It fell 2.4% on Wednesday. Brent crude, the basis of international prices, fell 69 cents to $ 83.18 a barrel.

The dollar fell from 113.83 yen to 113.56 yen. The euro is almost unchanged at $ 1.1604.

By Elaine Kurtenbach

Associated Press


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