Nikkei plunges by over 1000 points in afternoon trading

Share
Nikkei plunges by over 1000 points in afternoon trading

Investors may want to shift out of momentum and into more defensive stocks - companies that aren't as expensive and also pay healthy, stable dividends.

The Dow and the S&P 500, the benchmark for many index funds, lost more than 3 per cent.

Although the losses were widespread, stocks that have been the biggest winners on the market, including technology companies and retailers, suffered steep declines. In 1956, the Fed raised interest rates, while worldwide events like the Suez Crisis and the Hungarian Revolution caused investors to pull back. Higher rates increase borrowing costs, pinching corporate profits.

Stocks are in the midst of a scary October slump, sliding sharply because investors are anxious about rising interest rates. "Suddenly, the market's assumption that the USA corporate sector is an island of stability is coming under greater scrutiny".

The previous bear market, from October 2002 to October 2007, collapsed in the face of the global financial crisis, precipitated by raising interest rates in the face of inflation that revealed the vast scale of subprime mortgages and other badly collateralized loans. "I think the Fed has gone insane", he charged.

"Equity markets were pulverized today as investors remain in full out retreat and even the most pessimistic of equity bears are still in shock by the sheer magnitude of the move", he added.

Benchmark U.S. crude oil fell 2.4 per cent to $73.17 a barrel in NY.

"It is a flawless storm for technology right now with the tariff war with China and weaker demand for chips", Nauman said.

Apple gave up 4.6 percent to $216.36 and Microsoft dropped 5.4 percent to $106.16. The yield on the 10-year Treasury fell to 3.16 percent. Australia's S&P/ASX 200 slipped 2.4 percent to 5,906.00. The stock fell 15 per cent to 50 cents.

Innes, the Singapore-based head of Head of Trading for Asia Pacific with OANDA, attributed the slide to a combination of factors, including the possibility further interest rate hikes and the battle over tariffs between the USA and China.

New York's Dow Jones Industrial Average fell 3%, or more than 800 points, in Wednesday trading. The Dow fell 832 points, or down 3.15 percent. USA gold futures settled up $1.9, or 0.16 percent, at $1,193.4.

Shares in upscale jewellery retailer Tiffany & Co and perfume maker Estee Lauder both fell 7 percent after a warning from French luxury goods firm LVMH about softening demand in China. The Russell 2000 dropped 25 points, or 1.6 percent, to 1,550.25.

Shares in Facebook, Amazon, Apple, Netflix and Google's parent company Alphabet - the so-called "FAANG" stocks that have driven United States markets to all-time highs recently - all fell in NY trading.

The two-year yield soared to its highest mark since 2008.

Francis Tan, an investment strategist at UOB private bank, believes the markets will likely pick up in the US session. Before that, Bitcoin was showing stability in value as per the general crypto volatility standards around the same time stock market indexes were trending sideways. The Japanese yen strengthened 0.53 percent versus the greenback at 112.36. The euro rose to $1.1525 from $1.1496. Brent crude, the worldwide standard, lost 2.2 per cent to $83.09 a barrel in London. Brent crude, the global standard, dropped $1.58 to $81.51 a barrel.

Share

Advertisement

Related Posts

Search goes on for Majorca flash flood victims
Prime Minister Pedro Sanchez visited the disaster zone and described the situation as "absolutely extraordinary". Meanwhile tennis star Rafael Nadal , who is from the island, was seen joining in with the clean-up effort.

2K Games announces Borderlands 2 for PlayStation VR
On the heels of juggernauts like Fallout 4 and Skyrim, Borderlands 2 is the latest full game to get a PlayStation VR adaptation. Plus, lust after procedurally-generated shields, grenades, relics, class mods and more for maximum power and mayhem!

Kanye West Set To Watch Donald Trump Help Fatten Musicians' Pockets
West, a long-time Trump supporter, also decried the allegedly widespread expectation that all black people should be Democrats. West concluded the entertaining news conference by declaring, " I love this guy right here", and giving the president a hug.

Pipeline Explosion Causes Gas Shortage In British Colombia
About 700,000 FortisBC customers including all of those on Vancouver Island could be impacted by the shortage. The RCMP has confirmed that there has been a pipeline explosion in the vicinity of Prince George , B.C.

Rescues, damage in Florida after hurricane — WHAT’S HAPPENING
SULLIVAN: The governor has declared a state of emergency in 35 counties and is stressing the need to follow any evacuation orders. SULLIVAN: Right now he's working to get county residents protective measures before the hurricane makes landfall today.

Was Banksy's Recent Stunt a Hoax?
Koukjian, who has met Banksy , said he is sure he caught a glimpse of the artist in the saleroom amid the confusion of the moment. The video is captioned with a quote by the Spanish artist Picasso, who had said the urge to destroy was also a creative urge.

Justin Thomas aims to win 3 out of 4 years in Malaysia
Winning the Order of Merit is something I want to achieve by December and playing well here goes a long way to achieve that. I'm looking forward to defending my title and seeing my fans there again. "They're all PGA TOUR events", said Sharma, 22.

Senior Chinese official charged with stealing United States trade secrets
At a press conference Wednesday, Justice Department officials declined to say if the unnamed employee will face charges. In Beijing , foreign ministry spokesman Lu Kang called the accusations a "pure fabrication".

#HimToo Is the Best Internet Meme in a Long Time
Eventually, Pieter Hanson created a Twitter account under "That was my mom" and posted a photo of himself in a similar pose. Before he was confirmed, Christine Blasey Ford publicly came forward to accuse the judge of sexual assault decades ago.

Fortnite adds Quad Rocket Launcher, Disco Domination LTM, Skull Squad gear
With another rocket launcher, it'll continue to be tough for players to out-build their opponents. For context, 1,000 V-bucks is the equivalent of $10 United States dollars.

© 2015 ExpressNewsline. All Rights reserved.