Canada stocks-TSX hits 2-month low
Canada’s main stock index fell to its lowest level in nearly two months on Thursday, weighed down by technology and healthcare stocks, as investors continued to fret over the pace of interest rate hikes by major central banks.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 181.86 points, or nearly 1 percent, at 19,002.68, its lowest closing level since July 26.
The decline came as global central banks continued raising interest rates, following the U.S. Federal Reserve in a fight against inflation that is sending shockwaves through financial markets and the economy.
Rate-sensitive technology stocks fell 2.8 percent, while healthcare stocks dropped 2.3 percent.
U.S. crude oil futures settled 0.7 percent higher at $83.49 a barrel in volatile trading focused on Russian supply concerns.
Indices lost 0.5pc as Sensex ended at 59,120
Indian benchmark indices tumbled on Thursday and lost 0.5 percent in a volatile session. Fed’s hawkish tones with regard to future hikes made investors across the globe nervous and most of the indices lost ground on Thursday.
Sensex slipped 337 points to close at 59,119, while Nifty conceded 88 points to end at 17,629. Rupee dipped 51 paise during the day and reached an all-time low of 80.47 against the dollar.
Powergrid, HDFC Bank and Axis Bank shed more than 2 percent on Thursday’s trading. On the other side, Titan, Hindustan Unilever and Asian Paints featured among prominent gainers.
Japan shares lower at close of trade; Nikkei 225 down 1.36pc
Japan equities were lower at the close on Wednesday, as losses in the Power, Real Estate and Shipbuilding sectors propelled shares lower.
At the close in Tokyo, the Nikkei 225 declined 1.36 percent to hit a new 1-month low.
Declining stocks outnumbered rising ones by 2732 to 801 and 244 ended unchanged on the Tokyo Stock Exchange.
The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was up 1.09 percent to 21.25.
FTSE down after BOE hikes interest rates
UK shares fell on Thursday, with the midcap index touching the lowest in over two months on recession fears after the Bank of England joined several global central banks in hiking interest rates to tame inflation.
The blue-chip FTSE 100 index closed down 1.1 percent at a three-week low, while FTSE 250 index, more exposed to the domestic economy, fell 2.1 percent to its lowest since July 5.
The Bank of England raised its key interest rate to 2.25 percent from 1.75 percent and said it would continue to “respond forcefully” to inflation as needed even though the economy risks being in a shallow recession already.
“The Bank of England delivered in line with expectations,” said Sanjay Raja, senior UK economist at Deutsche Bank Research.
“The door is now open for a bigger hike in November, with the MPC explicitly acknowledging that should their updated outlook points to more persistent inflationary pressures, including from stronger demand, the Bank stands ready to respond forcefully.” The BoE estimates Britain’s economy will shrink 0.1 percent in the third quarter – partly due to the extra public holiday for Queen Elizabeth’s funeral – which, combined with a fall in output in the second quarter, meets the definition of a technical recession.
Investor confidence in British assets sits on the edge of a precipice ahead of new finance minister Kwasi Kwarteng’s fiscal update on Friday, according to a Reuters poll earlier this week.
Stocks close lower, major averages on pace for weekly falls
Stocks on Thursday posted their third straight daily decline, as mounting fears that the Federal Reserve’s aggressive rate hikes will push the economy into a recession dented risk appetite for investors.
The S&P 500 slid 0.8 percent to 3,757.99, while the Nasdaq Composite shed 1.4 percent to 11,066.81. The Dow Jones Industrial Average closed 107.10 points lower, or 0.3 percent, at 30,076.68.
Thursday’s session left the major averages on pace to close the week with losses. The Dow is down about 2.42 percent week to date, while the S&P and Nasdaq have tumbled 3 percent and 3.3 percent, respectively. The S&P and Dow closed Thursday 2.5 percent and 0.5 percent off their recent lows.
Bond yields surged again on Thursday, with the yields on the 10-year and 2-year Treasury notes notching fresh multiyear highs, hitting their highest levels since February 2011 and October 2007, respectively.
Thursday’s moves came after the Fed on Wednesday maintained its aggressive stance, enacting another 75 basis point hike and predicting bringing short-term rates as high as 4.4 percent by the end of 2022. Other central banks worldwide followed the Fed’s lead, implementing their own sizeable hikes overnight despite potential repercussions for the economy.
Growth-oriented tech stocks and semiconductors took a leg lower on Thursday amid fears of slowing economic growth. Industrials and consumer discretionary were the worst-performing S&P 500 sectors, losing about 1.7 percent and 2.2 percent, respectively, because of their reliance on the economy.
France stocks lower at close of trade; cac 40 down 1.87pc
France stocks were lower after the close on Thursday, as losses in the Financials, Gas & Water and General Financial sectors led shares lower.
At the close in Paris, the CAC 40 fell 1.87 percent to hit a new 1-month low, while the SBF 120 index declined 1.97 percent.
Falling stocks outnumbered advancing ones on the Paris Stock Exchange by 431 to 125 and 76 ended unchanged.
The CAC 40 VIX, which measures the implied volatility of CAC 40 options, was unchanged 0.00 percent to 18.96 a new 52-week high.
Gold Futures for December delivery was up 0.39 percent or 6.55 to $1,682.25 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in November rose 0.86 percent or 0.71 to hit $83.65 a barrel, while the November Brent oil contract rose 0.82 percent or 0.74 to trade at $90.57 a barrel.
EUR/USD was unchanged 0.03 percent to 0.98, while EUR/GBP unchanged 0.10 percent to 0.87.
The US Dollar Index Futures was up 0.60 percent at 111.01.