Global markets today: US and European stocks decline on worries over rising yields, Israel-Hamas war

Federal Reserve chairman Jerome Powell’s comments over interest rate hike also increased risk aversion among traders.

The MSCI’s gauge of stocks across the globe shed 0.89%. Emerging market stocks lost 1.23%. 

Wall Street

US stock indices fell after Powell’s speech.

The S&P 500 lost 37.02 points, or 0.86%, to end at 4,277.58 points. The Nasdaq Composite lost 128.61 points, or 0.97%, at 13,185.69. The Dow Jones Industrial Average fell 254.24 points, or 0.76%, at 33,410.84.

The 10-year US treasury yields reached a 16-year high after Jerome Powell said that additional rate hikes could be warranted in view of economic resiliency and labor market tightness.

The yield on the 10-year treasury touched 4.99% before paring its gain.

Currencies

The US dollar fell at 149.87 Japanese yen from 149.90. The euro rose at $1.0581 from $1.0536.

Europe

European shares slid on Thursday on a raft of downbeat corporate earnings.

The pan-European STOXX 600 fell 1.2% hitting a two-week low.

Technology sector, up 0.5%, was the only gainer among sectors.

Britain’s FTSE 100 dropped 1.2% at 7,499.53. Germany’s DAX lost 0.3% at 15,045.23. France’s CAC 40 fell 0.6% at 6,921.37.

Energy prices 

The US crude oil benchmark for November delivery added $1.05 at $89.37 a barrel on Thursday. Brent crude for December delivery rose 88 cents at $92.38 a barrel.

Natural gas for November delivery fell 10 cents at $2.96 per 1,000 cubic feet.

Bullion

Gold for December delivery gained $12.20 at $1,980.50 an ounce. Silver for December delivery fell 7 cents at $23.103 an ounce.

Asia

In Asian stock markets, Hong Kong’s Hang Seng index shed 2.5% at 17,295.89. China’s Shanghai Composite lost 1.7% at 3,005.39.

The MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.48% lower.

Japan’s Nikkei 225 edged down 1.9% at 31,430.62. 

Australia’s S&P/ASX 200 index ended 1.4% lower at 6981.600. New Zealand’s benchmark S&P/NZX 50 index closed 0.8% lower at 11135.5800.

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Updated: 20 Oct 2023, 01:54 AM IST