Saturday 30/05/2020 - 06:05 pm

Global Stocks Sink as Investors Turn More Cautious

2018.01.30 05:29

World stocks skidded lower on Tuesday as investors turned cautious about recent record highs and Wall Street suffered its biggest loss in over four months the day before.

KEEPING SCORE: The DAX in Germany lost 0.6 percent to 13,240 and the CAC 40 in France shed 0.5 percent to 5,493. Britains FTSE 100 gave up 0.7 percent to 7,616. S&P 500 futures fell 0.5 percent and Dow futures lost 0.9 percent, auguring a downbeat start on Wall Street.

THE DAY IN ASIA: Japans Nikkei 225 index lost 1.4 percent to 23,291.97 and Hong Kongs Hang Seng dropped 1.1 percent to 32,607.29. South Koreas Kospi sank 1.2 percent to 2,567.74. The Shanghai Composite index fell 0.8 percent to 3,488.01 and Australias S&P ASX 200 gave up 0.9 percent to 6,022.80. Indias Sensex lost 0.7 percent to 36,033.55. Shares also were lower in Taiwan, Singapore and Indonesia.

ANALYSTS VIEWPOINT: "There was always a worry that sentiment had got a little crazy, with a number of red flags around market euphoria being highlighted by traders and strategists," Chris Weston of IG said in a commentary.

UPBEAT DATA: Economic data was upbeat, showing the eurozone economy grew in 2017 at its fastest pace in a decade. It expanded by 2.5 percent, the highest since 2007. Some investors may worry that the strong growth could convince some at the European Central Bank to wind down its monetary stimulus program earlier than expected. The stimulus is credited by some as having supported stock markets by making credit cheaper.

TRUMP: Also on investors radar: Tuesday nights State of the Union address by President Donald Trump, and a two-day meeting of the Federal Reserves policymaking committee that wraps up Wednesday. "This is one of the few prepared speeches that the president will give, so the progress on NAFTA and trade with China is something the market is going to watch carefully," said Mike Baele, senior portfolio manager at U.S. Bank Private Wealth Management.

ENERGY: Benchmark U.S. crude fell 66 cents to $64.90 a barrel in electronic trading on the New York Mercantile Exchange. It lost 58 cents on Monday. Brent crude, used to price international oils, dropped 42 cents to $69.04 a barrel. It fell $1.06 on Monday.

CURRENCIES: The dollar, which fell sharply last week, declined to 108.69 yen from 108.96 yen late Monday. The euro rose to $1.2421 from $1.2383 following the strong economic data in the eurozone.

BITCOIN: The price of bitcoin fell 2.9 percent to $10,838 as early afternoon in Europe, according to the tracking site CoinDesk. Bitcoin futures on the Cboe Futures Exchange fell 1.5 percent to $11,040.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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