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Global stocks crumble as international growth and US earnings fears spook markets

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Asian shares dived on Thursday as hundreds of billions of dollars hemorrhaged from global markets after a rout in tech stocks inflicted the largest daily decline on Wall Street since 2011, wiping out all its gains for the year.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS skidded about 2 percent. Japan’s Nikkei .N225 tumbled 3.5 percent to a six-month trough while Australian shares hit a more than one-year low.

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Tokyo’s Topix index .TOPX tumbled 3 percent, evaporating more than $155 billion in market value. Chinese shares opened in the red too with the blue-chip SSE Composite index .SSEC plummeting 2.5 percent. Hong Kong’s Hang Seng index .HSI sank 2.2 percent.

The dive in formerly high-flying U.S. tech stocks sent investors scampering to the safety of sovereign bonds, with yields in 10-year Treasuries US10YT=RR falling the most since May to 3.11 percent.

“Weak U.S. housing data, mixed corporate earnings results, trade war fears and concerns regarding a slowing global economy all contributed to the sell off,” Sydney-based Rivkin Securities said in a note to clients.

“Investor sentiment remains cautious as we anticipate the reports of over 100 S&P 500 companies including Amazon (AMZN.O), Alphabet (GOOGL.O) and Comcast (CMCSA.O).”

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Weak readings on manufacturing in Europe added to angst over world growth, as did a surprise slump in U.S. home sales, which suggested rising mortgage rates were sapping demand for housing.

Adding to the air of tension, police intercepted suspected bombs mailed to former U.S. President Barack Obama, Hillary Clinton and other high-profile Democrats, as well as to CNN, in what New York officials branded an act of terrorism.

The growing international pressure on Saudi Arabia over the death of journalist Jamal Khashoggi also weighed on investor sentiment.

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On Wall Street, disappointing forecasts from chipmakers hammered the tech sector. They followed weaker-than-expected forecasts on Tuesday from industrial giants Caterpillar (CAT.N) and 3M (MMM.N).

The Nasdaq .IXIC closed down 12.4 percent from its Aug. 29 record closing high, falling 4.4 percent for the day in its biggest one-day percentage decline since Aug. 18, 2011.

In dollar terms, the Nasdaq vaporized $524 billion in market capitalization overnight.

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The Dow <.DJI > fell 2.41 percent and the S&P 500 .SPX lost 3.09 percent.

According to data analyzed by Reuters, the proportion of stocks, regions and sectors that are technically in a bear market has shot up since the start of January, prompting some analysts to conclude the bull run may already be over.

Citi has lowered its global growth forecast for both 2019 and 2020 by 0.1 percentage point each to 3.2 percent and 3 percent, respectively, it said in a note Thursday, citing policy tightening by the U.S. Federal Reserve.

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“Over the next year, bouts of financial market turbulence are likely to worsen,” Citi economist Catherine Mann said, “as gaps between market expectations of policy rate hikes and the median dot plot close.”

In foreign exchange markets, client participation on both spot and options was fairly light, Citi noted in a separate note.

Funds flowed to the U.S. dollar and Treasuries and out of the euro and the British pound.

The euro shed 0.7 percent to $1.1397 EUR= and breached a major chart bulwark at $1.1430. It was last up 0.1 percent at $1.1407.

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Against a basket of currencies, the dollar eased from near a nine-week peak to 96.267 .DXY. [USD/]

Sterling hit a seven-week trough $1.2865 GBP=, having dropped 0.8 percent overnight. It was last a shade higher at $1.2892.

The yen got the usual safe-haven bid, with the euro skidding to a two-month low at 127.68 yen EURJPY=. Even the high-flying dollar eased to 112 yen JPY=.

Oil prices slipped amid concerns over global growth.

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Brent crude LCOc1 fell 69 cents to $75.48 a barrel, while U.S. crude dropped 54 cents to $66.28 CLc1. [O/R]

Spot gold XAU= was a tad firmer at $1,236.52 an ounce.

Additional reporting by Wayne Cole; Editing by Sam Holmes & Shri Navaratnam


Report typos and corrections to: [email protected].
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‘Make it a twofer’: Trump brutally mocked after claiming ‘rumor has it’ CNN’s president will resign ‘momentarily’

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President Donald Trump unleashed his second attack on the media over the course of less than 24 hours, this time attacking his top news target, CNN, as "a virtual fraud." The president also claimed "rumor has it" CNN's president, Jeff Zucker, "will be resigining momentarily?" (The typo is Mr. Trump's.)

Now that we have found out that @CNN is a virtual fraud, rumor has it that Jeff Zucker will be resigining momentarily?

— Donald J. Trump (@realDonaldTrump) October 15, 2019

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Trump and the end of the American myth of meritocracy

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The following is chock-a-block with spoilers for "Succession" Season 2, including the finale, so proceed with caution.For understandable reasons, the internet is all a-chatter about the final scenes of Season 2 of "Succession." On Sunday's finale, Kendall Roy (Jeremy Strong), who spent most of this season looking like a whipped puppy, finally stuck it to his old man, Logan Roy (Brian Cox), throwing the patriarch under the bus during a live press conference, during which Kendall was supposed to offer himself up as the fall guy for Waystar Royco's criminal behavior. It was a moment of Kendall showing spine and competence, and understandably, audiences cheered him on.
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2020 Election

‘I don’t care’: Watch Kamala Harris shut down Chris Hayes for asking a dumb question about Trump

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Sen. Kamala Harris shut down MSNBC anchor Chris Hayes during a post-debate interview on Tuesday evening.

Hayes questioned Harris about her call for Twitter to follow their terms of service and kick President Donald Trump off of the platform.

"Do you think he puts people’s lives in danger when he targets them in tweets?" Hayes asked.

"Absolutely," Harris replied.

"Do you think he knows that?" Hayes asked.

"Does it matter?" Harris replied.

"The fact is he did it. The fact is that he is irresponsible, he is erratic," she explained. "He is like a 2-year-old with a machine gun."

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