17 October 2018, News Wires — A gauge of stocks across the world edged lower on Wednesday following its largest daily run-up in over two years, as the outlook on earnings soured after a warning on the European auto sector and a revenue miss from IBM.
Crude futures fell for the first session in four after U.S. government data showed a much larger-than-expected build in crude inventories.
The U.S. dollar rose as the market awaited the minutes from the latest Federal Reserve meeting. Lower-than-expected UK inflation data weighed on sterling, which gave up the previous day’s gains.
On Wall Street, IBM fell 7.4 percent, dragging blue-chips lower a day after the company missed revenue expectations. On Tuesday, the S&P 500 posted the biggest daily gain since late March.
Stocks extended losses when oil prices fell further.
“The (stock) indices are pulling back after yesterday’s blockbuster earnings rally that is likely to be challenged by the Fed’s FOMC minutes,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
The Dow Jones Industrial Average fell 266.91 points, or 1.03 percent, to 25,531.51, the S&P 500 lost 25.22 points, or 0.90 percent, to 2,784.7 and the Nasdaq Composite dropped 76.18 points, or 1 percent, to 7,569.31.
European stocks hit a one-week high in early trade, but then were pulled lower by a 2.5 percent fall in an index of auto stocks .SXAP. Goldman Sachs said slow demand in China could hit earnings in the sector.
The pan-European FTSEurofirst 300 index lost 0.71 percent and MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 1.71 percent.
Emerging market stocks rose 1.34 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan. US closed 0.64 percent higher, while Japan’s Nikkei rose 1.29 percent.
CRUDE SLIDES, DOLLAR INCHES UP
Oil traders took profits after a three day run-up in prices, with losses extending after data showed U.S. crude inventories rose more than expected.
U.S. crude fell 2.74 percent to $69.95 per barrel and Brent was last at $79.55, down 2.28 percent on the day.
The euro fell 0.38 percent to $1.1529 and Sterling was last trading at $1.3134, down 0.38 percent on the day.
- Reuters
