A roundup of trading on major world markets:
NEW YORK – US stocks have dropped as oil prices slid and worries about the global economy resurfaced, dragging down the US dollar against the Japanese yen and causing investors to flee riskier assets.
The S&P 500 posted its biggest daily percentage loss in six weeks.
The growth worries weighed especially on interest-rate sensitive financials, strategists said, with the group down 1.9 per cent and the biggest drag on the S&P 500.
“There’s concern about a global slowdown,” said Michael O’Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut.
“I think what we’re seeing is the market believes that these (global central bank) policies and discussions on negative rates have diminishing returns at this point and are creating more harm than good, more uncertainty than stability.”
The Dow Jones industrial average closed down 174.09 points, or 0.98 per cent, to 17,541.96, the S&P 500 lost 24.75 points, or 1.2 per cent, to 2,041.91 and the Nasdaq Composite dropped 72.35 points, or 1.47 per cent, to 4,848.37.
Minutes from the Fed’s March meeting released on Wednesday pointed to concerns about the central bank’s limited ability to tackle a global economic slowdown, reducing the odds of a rate increase before June.
Crude oil settled lower on Thursday after data showed higher weekly inventories. The S&P energy index was down 0.6 per cent.
Adding to investor caution, first-quarter earnings kick into high gear next week, with a 7.4-per cent year-over-year decline projected for S&P 500 companies, according to Thomson Reuters data.
LONDON – Britain’s top share index has dipped, although there have been rises in pharmaceutical stocks and retailers after a well-received update from Marks and Spencer supported UK equities.
The FTSE 100 was down 24.74 points, or 0.4 per cent, at 6,136.89 points at its close on Thursday, outperforming the broader European market.
Marks & Spencer rose 3 per cent in strong volumes of 228.8 per cent of its 90-day average, after it posted a decline in sales less severe than expected.
Supermarket Sainsbury also rose, up 2.7 per cent after being upgraded to “outperform” from “underperform” by Credit Suisse, saying the food retail sector is a recovery story and that the grocer’s bid for Argos owner Home Retail is “financially and strategically inspired”.
Gold miner Randgold Resources was the top gainer on the index, rallying 3.2 per cent after a target price hike by Credit Suisse and Dundee Capital.
But JP Morgan’s rating cut on Glencore and Antofagasta sent the shares down 5.7 per cent and 2.6 per cent respectively, with Glencore the top faller on the index.
Healthcare stocks were also in focus, with AstraZeneca up 1 per cent, taking gains over the last two sessions to 5.5 per cent and hitting its highest level since February earlier in the session.
HONG KONG – The Hang Seng index rose 0.3 per cent, to 20,266.05, while the China Enterprises Index lost 0.2 per cent, to 8,647.33 points.
The blue-chip CSI300 index fell 1.5 per cent, to 3,209.29, while the Shanghai Composite Index lost 1.4 per cent, to 3,008.42 points.
The drop in the US dollar drove a 5 per cent jump in oil prices overnight as US inventories unexpectedly fell and investors gauged the possibility of an output freeze.
WELLINGTON – The S&P/NZX50 rose 0.3 per cent to 6,755.22.
