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US Stocks Join the Global Market Slump

By on February 11, 2016

As the tumult in global financial markets continues, here’s a snapshot of the day so far:

– European stocks have closed sharply lower amid the turmoil that is engulfing financial markets.

Germany’s DAX benchmark index fell 2.9 percent to close at 8,752.87 while Britain’s FTSE 100 shed 2.4 percent to 5,536.97. France’s CAC 40 dropped 4.1 percent to 3,896.71, dragged down by bank Societe Generale, which fell 12.6 percent after warning on profits.

Investors are worried about the outlook for the global economy, the plunge in oil prices and low inflation, among other things.

-U.S. stocks were also down and earlier fell in most Asian markets.

 

All eyes are turning to Federal Reserve Chair Janet Yellen as she prepares to give her second day of testimony to Congress, this time to the Senate Banking Committee.

Yellen’s comments on Wednesday have been widely blamed for the volatility in markets on Thursday. Her apparent caution over the prospect of further interest rate hikes from the Fed has been viewed by many as a warning over the state of the global economy.

Connor Campbell, an analyst at Spreadex, says Yellen “is unlikely to provide anything fresh for the markets to chew on.”

– Gold has hit a year-high around $1,235 an ounce as it gains support through its perceived status as a store of safe value in times of market stress.

– Oil prices are down again as investor fret over the state of the global economic recovery and a glut in supply. The benchmark New York rate is down another 4 percent at $26.34 a barrel, its lowest level in 13 years.

– The yen is also gaining support through its safe haven status. Earlier, the dollar fell to a 14-month low around 111 yen.

 

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