TOKYO (Reuters) – Asian stocks slid Wednesday as growing concerns about global economic growth grabbed the financial markets, slashing Wall Street stocks and raising the dollar for a minimum of two weeks.
PHOTO PHOTO: An investor sits in front of displays showing stock information at a brokerage office in Beijing, China, October 11, 2018. REUTERS / Thomas Peter / File Photo
Spreadbetters expected that European equities would open slightly higher in the hunt at advantageous prices after several days of losses, with the British FTSE up 0.15%, the German DAX up 0.3% and the CAC in France rising 0,25%.
The broader MSCI index of Asia-Pacific shares outside Japan fell 0.45%.
The Shanghai composite index deviated from red and lost 0.05%.
Australian shares lost 0.5%, South Korea's KOSPI lost 0.4% and Japan Nikkei lost 0.35%.
US stocks were sold for a second day on Tuesday, as energy prices fell with oil prices, while retailers, including Target and Kohl & # 39; s, sank after weak profits and forecasts, fueling concerns for economic growth. [.N]
The Nasdaq closed at lows from Tuesday to Tuesday, while the S & P 500 and Dow ended at the weakest levels by the end of October.
"It is difficult to single out a single factor behind global risk aversion, and Apple's commercial tensions appear to be advertised as factors every other day, but it's hard to blame them for all ills," said Soichiro Monji, senior economist. at Daiwa SB Investments.
"It seems that the markets are starting to prepare for a loss of momentum in the global economy, although it is going quite well at the moment."
The recent downturn in global equities was partly driven by a decline in US technology stocks, a group that had helped propel Wall Street's long bullish market.
"We are anticipating greater weakness in China and a sharp slowdown in the United States next year, given the highly cyclical nature of the information technology (IT) sector, we have argued for a while. growth of its profits would have been particularly difficult in these circumstances ", wrote the economists of Capital Economics.
The dollar index against a basket of six major currencies was slightly changed to 96.776 after the 0.7% rally overnight, when it went from a two-week low to 96.042.
At the beginning of the week, the cautious comments of Federal Reserve officials on global economic outlook turned the dollar down to two-week lows, as they suggested to the central bank to slow down or even close the policy tightening cycle. monetary.
The euro had a higher shadow at $ 1.788 after losing 0.75% on the previous day.
The dollar rose 0.1 percent to 112.87 yen.
The Australian dollar, sensitive to changes in risk sentiment, rose 0.25% to $ 0.7231 as a result of a 1% drop on the day before.
Currencies linked to commodities such as the Canadian dollar have struggled in the wake of falling oil prices.
The Canadian dollar was stuck near a five-month low of $ 1.3318 per dollar on Tuesday, when it lost more than 1 percent.
Oil prices managed to stabilize after Tuesday's crash. But the market has remained shaky, with the International Energy Agency (IEA) warning of unprecedented uncertainty in oil markets due to the economic environment and political risk. [O/R]
US crude oil futures rose 1.45% to $ 54.21 a barrel after withdrawing around 6% to $ 52.77 Tuesday, the lowest level since late October 2017, captured by a wider Wall Street selloff fueled by growing concerns over a slowdown in global economic growth.
Brent crude rose 1.3 percent to $ 63.35 a barrel after sliding past 6 percent on Tuesday, when it hit a one-year low of $ 61.71. The contracts had reached a maximum of four years above $ 86.00 at the beginning of October.
Reporting by Shinichi Saoshiro; Editing by Eric Meijer and Sam Holmes