Published: Sat, February 10, 2018
Finance | By Kristine Clayton

Global Markets: US, European stocks up sharply, oil prices fall

Global Markets: US, European stocks up sharply, oil prices fall

Thursday's declines mean the Dow and S&P 500 have now fallen by more than 10% from the record highs set in January, a threshold analysts call a correction.

The S&P 500 has seen a correction - a decline of 10 percent or more - plenty of times in the past, the most recent one being a 14.2 percent fall from May 21, 2015, to February 11, 2016. "If you look at historical numbers, we're, even with the drop, 4,000 points higher than we were a year ago and double what we were five years ago", Kassens said.

Traders saw the Dow drop 1,175 points amid a sell off rush.


The move in yields kept equity investors nervous about higher rates and inflation.

Worries about future inflation and rising interest rates also weighed on the market again Thursday.

The price of gold, which is another haven was also slightly higher on Monday.

"There's some big-money players that have really leveraged to the low rates forever, and they have to unwind those trades", said Doug Cote, chief market strategist at Voya Investment Management.

On Monday, S&P 500 biggest losing stock was Wells Fargo.

Meanwhile, the Nasdaq composite index was down 274.82 points, or 3.90 per cent, to 6,777.16.

USA stocks swooned Friday and Monday as investors anxious that accelerating inflation and higher interest rates could derail the market's record-setting rally.

The 100 share index in London closed down 1.49% at 7,170.69 points.

Ten-year Treasury yields now stand at 2.8%, almost their highest point since 2014.

Other major USA stock indexes also tumbled Monday.

Stocks started to fall in early trading and extended their losses throughout the morning.

About five minutes into trading, the Dow Jones Industrial Average was down 0.4 per cent to 24,795.98. Microsoft lost 2.3 percent.

Benchmark U.S. crude lost 77 cents, or 1.3 percent, to $60.38 per barrel on the New York Mercantile Exchange.

The recent selloff, sparked by last Friday's jump in Treasury yields, sent the VIX index, Wall Street's "fear gauge", sharply higher.

On Friday, stock markets around the world that opened ahead of the USA trading day were in sell-off mode. It was up as much as 349 shortly after the opening bell.

"Seen over a longer period the correction in the stock market is relatively small and is likely to have no impact on the macro economy", said Torsten Sløk, chief global economist at Deutsche Bank, in a statement. The Standard & Poor's 500 index fell 3.75 percent.

The Dow was down 501 points, or 2 percent, to 24,397. On the Nasdaq, 1,981 issues rose and 438 fell.

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