Wednesday, 14 November, 2018

Global Stocks Drop Amid Concerns About Turkey

Traders work on the floor of the NYSE in New York Traders work on the floor of the New York Stock Exchange in New York U.S
Nellie Chapman | 12 August, 2018, 16:12

The S&P 500 was down 4.12 points, or 0.14 percent, to 2,853.58.

At the heart of the crisis was a slump in the Turkish lira, which worsened after President Donald Trump doubled tariffs on steel and aluminum imported from the country.

"It was a classic risk-off move", said Quincy Krosby, chief market strategist at Prudential Financial in New Jersey.

The technology sector has been at the center of a sharp recovery in USA stocks since a market rout in February.

Investors fled to safe-haven assets, with the dollar rising to a 13-month high and USA bond yields slipping to a three-week low.

Seven of the 11 main S&P sectors were higher.

"I don't think that the Turkish situation is really important to the global economy", he told AFP. "Anytime there's a sniff of contagion they will be weak", said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

The S&P 500 is up 13.23 points, or 0.5 per cent.

The Dow Jones Industrial Average fell by 222 points, or 0.9%, at 25,286, the S&P 500 index fell 0.7% at 2,833, while the Nasdaq Composite Index dropped 0.8% at 7,831.

The Dow Jones Small-Cap Value TSM Index closed at 10,541.31 for a loss of -48.08 points or -0.45%.

Sinclair dropped 4 percent after Tribune Media ended its $3.9 billion deal to be acquired by Sinclair and filed suit. Micron also fell 1.1 percent.

Meanwhile, concerns over escalating trade conflict between the USA and China weighed on the trade-sensitive S&P 500 Industrials Index, which ended up losing 0.57% on the day.

Economic data showing USA consumer inflation rose steadily in July, supporting the case for another interest rate hike next month by the Federal Reserve.

Declining issues outnumbered advancing ones on the NYSE by a 2.10-to-1 ratio; on Nasdaq, a 1.51-to-1 ratio favoured decliners.

The S&P index recorded 12 new 52-week highs and 10 new lows, while the Nasdaq recorded 73 new highs and 78 new lows.