European markets slide as global rally falters

Wall Street sign

Weighing on the outlook for stocks were the prospect of higher interest rates by the Fed and trade disputes between the US and China

Wall Street suffers worst Christmas Eve trading day on record The Dow Jones Industrial Average plunged more than 650 points on Monday after Donald Trump renewed his attack on the Federal Reserve on Twitter.

The Dow Jones Industrial Average soared on Wednesday, picking up 1,086 in the largest one-day gain ever. The Nasdaq Composite is up 2.5 percent at 6,349. Retailers also were big gainers, after a holiday shopping season marked by robust spending.

The Dow had ended at 21,792 points which was about 653 points lower than the high and the trading session that was ahead of the Christmas holiday.

Markets were roiled ahead f the Chrismas break due to a number of political headlines taking the limelight. Investors also welcomed the assurance by Kevin Hassett, the chairman of the White House's Council of Economic Advisers, that Jerome Powell's job as head of the Federal Reserve was "100 per cent" safe. Worries about rising interest rates, Donald Trump's attacks on the Federal Reserve for raising those rates, a government shutdown and the continuing trade tensions between the USA and China have all rattled investors and the major indices are now on the brink of a bear market - a 20% fall from their most recent high. Losses in utility companies and carmakers dragged the Stoxx Europe 600 Index into the red.

India vs Australia: Debutant Agarwal falls for 76 after frustrating Kiwis
Not long after ducking into a Cummins bouncer to be hit in the helmet, Vihari (8) gloved the paceman and Aaron Finch took a simple catch.

While Japanese and Australian shares rose strongly, markets in mainland China as well as Hong Kong closed 0.4 per cent weaker after data showed earnings at China's industrial firms dropped in November for the first time in almost three years.

Everyone on Wall Street knows strong rallies are common in troubled times. The market remains on track for its worst December since 1931, during the depths of the Depression, and could finish 2018 with its biggest losses in a decade.

Although U.S. economic growth started to moderate from the "exceptionally strong pace" this year, the momentum remained strong, Goldman Sachs said in a report.

A drop in oil prices led to a 2.58 percent slide in the energy index, while technology, consumer discretionary and communication services sectors tumbled more than 2 percent. Advanced Micro Devices lost 6 percent to $16.83. Brent crude, used to price global oils, gained 0.6 percent to $51.10 a barrel in London. Adobe rose 8.7 per cent to $222.95.

Girl, 7, finds Santa gifts, cookies gone despite Trump's 'marginal' comment
Those offerings were gone in the morning, and under a Christmas tree, there was a wrapped present with Collman's name on it. He scrapped plans to travel to Palm Beach because of the shutdown. "Nothing new", Trump said, according to Reuters .

Mnuchin held calls on Sunday with the heads of the six largest US banks in order to reassure nervous investors that the financial markets and economy were functioning properly.

The dollar fell to 110.53 yen from 111.36 yen on Wednesday. Over the two sessions following that gain, the Dow dropped more than 800 points. The euro weakened to $1.1387 from $1.1404.

Total U.S. retail sales, excluding automobiles, rose 5.1% between November 1 and December 24 from a year earlier, according to Mastercard SpendingPulse, which tracks both online and in-store spending with all forms of payment. South Korean shares tumbled after a holiday, and Shanghai stocks fell for a second day.

Indonesia orders flights to steer clear of erupting Anak Krakatau volcano
It was later forced to issue a correction and an apology as it pointed to a lack of early warning systems for the high death toll. Almost 20,000 people have been displaced by the tsunami and almost 1,500 injured, according to Reuters .

Latest News