World Shares Retreat, cooled by decline on Wall Street | Economic news


By ELAINE KURTENBACH, AP Business Writer

Stocks slipped in Europe and Asia on Thursday after a pullback on Wall Street pushed the S&P 500 and Dow Jones Industrial Average down from their latest highs.

Shares fell in London, Frankfurt, Tokyo and Shanghai but rose in Paris.

A steady stream of corporate newsletters continues Thursday with industry barometer Caterpillar and tech giant Apple. Amazon and Starbucks will also release their results on Thursday.

Outside of earnings, investors will receive an update on US economic growth when the Commerce Department releases its third quarter gross domestic product report on Thursday.

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Investors are also eagerly awaiting the Federal Reserve’s meeting next week to see how it moves forward with its plans to cut bond purchases and its position on interest rates.

The German DAX was down 0.1% to 15,690.45 while in London the FTSE 100 was down 0.4% to 7,221.86. The CAC 40 in Paris gained 0.3% to 6,772.04.

The future of Dow industrials was up 0.1%, while that of the S&P 500 also gained 0.1%.

On Wednesday, the S&P 500 slipped 0.5% and the Dow Jones Industrial Average lost 0.7%. The Nasdaq rose less than 0.1% and the Russell 2000 Index of Small Businesses posted the heaviest losses, falling 1.9%.

In Asia, the surge in coronavirus cases in China and Singapore has heightened doubts about the economic outlook, as inflationary trends could cause central banks to step up their monetary policy tightening measures.

In Seoul, the Kospi lost 0.5%, to 3,009.55, even after Samsung Electronics reported Thursday its highest quarterly profit in three years thanks to continued robust demand for its computer memory chips.

Samsung’s dual strength in parts and finished products has allowed it to thrive during the pandemic as millions of people have been forced to work from home. However, the company said it was facing “longer than expected” component shortages that could affect semiconductor demand in the current quarter.

Tokyo’s Nikkei 225 index fell 1% to 28,820.09.

The Bank of Japan kept monetary policy unchanged at a meeting that ended Thursday while warning of downward pressure on the world’s third-largest economy due to the pandemic and “constraints on the side of the world.” offers ”such as shipping delays and bottlenecks and shortages of computer chips and other manufacturing materials.

It lowered its growth forecast for the year ending March to 3.4% from the 3.8% estimate released in July. He predicted that inflation would be 0.0% this year, a sharp drop from his previous forecast of 0.9%.

But he also said he expects improvement as the impact of COVID-19 gradually wanes, “mainly due to widespread vaccinations, the economy is expected to recover, supported by increased external demand. , accommodating financial conditions and the government’s economic measures, “It said.

Sony reported a 54% drop in second-quarter tax profit, mainly due to a one-time tax gain that inflated the number last year, as the Japanese electronics and entertainment company managed to maintain its results despite the coronavirus pandemic. The company’s shares fell 1.6% on Thursday.

In Hong Kong, the Hang Seng index lost 0.3% to 25,555.73, while the Shanghai Composite index fell 1.2% to 3,518.42. The S & P / ASX 200 in Sydney lost 0.3% to 7,430.40.

The 10-year Treasury yield remained stable at 1.55%, against 1.53% on Wednesday night.

US benchmark crude fell 68 cents to $ 81.98 a barrel on Thursday. It fell 2.4% on Wednesday. Brent crude, the basis of international pricing, fell 69 cents to $ 83.18 a barrel.

The dollar fell to 113.56 Japanese yen from 113.83 yen. The euro is virtually unchanged at $ 1.1604.

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