Global stocks fall on oil, tech weakness


FE Team | Published: April 21, 2018 10:54:14 | Updated: April 24, 2018 11:58:00


File Photo (Collected)

World stocks slipped on Friday amid weakness in the energy sector and as worries about a global slowdown in smartphone demand dented the technology sector.

Oil prices were also traded lower after US President Donald Trump said prices were artificially high.

While the MSCI index of global stock markets was down 0.91 per cent on the day, it was still poised for its second week in the black after a strong start to the corporate earnings season.

Wall Street equities slid on weakness in energy stocks, dented by the falling oil prices, and a second session of limp tech stocks following a slide by Apple Inc and its suppliers on Thursday.

The Dow Jones Industrial Average fell 187.96 points, or 0.76 per cent, to 24,476.93, the S&P 500 lost 19.45 points, or 0.72 per cent, to 2,673.68 and the Nasdaq Composite dropped 72.64 points, or 1 per cent, to 7,165.42, reports Reuters.

US crude fell 0.42 per cent to $68.00 per barrel and Brent was at $73.35, down 0.58 per cent on the day.

However, they were still set for a second consecutive week of gains, buoyed by tightening supplies and continued support from OPEC and its allies on supply cuts.

The recent surge in oil prices to their highest for more than three years supported bond yields across the euro zone.

Asian shares slipped as a warning from the world’s largest contract chipmaker knocked the tech sector.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.45 per cent lower, while Japan’s Nikkei lost 0.13 per cent. Emerging market stocks lost 1.52 per cent.

Shares in Europe fell 0.14 per cent but were on track for a fourth week of gains.

Dovish remarks overnight from Bank of England Governor Mark Carney weakened sterling and helped the FTSE 100 index advance. It was last up 0.35 per cent.

Sterling continued to fall against the dollar, hitting its lowest against the greenback since April 6.

Expectations of a British interest rate increase in May have shrunk to 40 per cent from 70 per cent earlier this week.

The dollar index, measured against a basket of peer currencies, rose 0.41 per cent, with the euro down 0.54 per cent to $1.2274.

Spot gold dropped 0.5 per cent to $1,338.84 an ounce.

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