Global stocks slip following sell-off on Wall Street
Posted April 25, 2018 12:22 am.
Last Updated April 25, 2018 2:00 am.
This article is more than 5 years old.
TOKYO – Global shares fell back on Wednesday, mirroring a sell-off on Wall Street triggered by worries over slowing growth and falling profits.
KEEPING SCORE: France’s CAC 40 edged nearly 0.1 per cent lower in early trading to 5,440.32, while Germany’s DAX slipped nearly 0.8 per cent to 12,456.33. Britain’s FTSE 100 lost 0.4 per cent to 7,392.47. U.S. shares were set to drift lower with Dow and S&P 500 futures both down 0.2 per cent.
ASIA’S DAY: Japan’s benchmark Nikkei 225 shed 0.3 per cent to finish at 22,215.32. Hong Kong’s Hang Seng lost 1.1 per cent to 30,281.15. The Shanghai Composite index shed nearly 0.4 per cent to 3,117.97. South Korea’s Kospi lost 0.6 per cent to 2,448.81. Australian markets were closed for Anzac Day, a public holiday. Southeast Asian shares were also lower.
THE QUOTE: “U.S. markets were rocked by both bond yields and corporate concerns overnight, seeing only few defensive sectors thriving on the comprehensive S&P 500 index. This could be a trend that carries through to the Asian session,” says Jingyi Pan, market strategist at IG in Singapore.
TAKEDA-SHIRE: Shares in Japanese pharmaceutical company Takeda Pharmaceutical Co. tumbled 7 per cent to in Tokyo on Wednesday after the company confirmed it had revised its offer for an approximately 50 per cent stake in biotech company Shire Plc to 46 billion pounds ($64.2 billion). Shire’s board indicated that it would recommend that proposal to its shareholders, Takeda said in a statement. The two companies have until May 8 to reach a final deal, they said.
YIELDS QUESTION: Bond prices slipped again Tuesday. The yield on the 10-year Treasury note rose to 2.99 per cent from 2.98 per cent. Earlier it peaked at 3 per cent for the first time since January 2014. Low interest rates have played an important role in the economic recovery of the last decade, and the yield on the 10-year note is a benchmark for many kinds of interest rates including mortgages. It’s been climbing because investors expect higher economic growth and inflation.
ENERGY: Benchmark U.S. crude oil edged 7 cents higher to $67.74 a barrel in electronic trading on the New York Mercantile Exchange. It shed 1.4 per cent to $67.70 on Tuesday. Brent crude, used to price international oils, gained 13 cents to $73.99 per barrel.
CURRENCIES: The dollar rose to 109.24 yen from 108.82 yen. The euro rose to $1.2193 from $1.2196.
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